Once you have passed your driving test, you will want to get out and about on the road as soon as possible to enjoy your new-found freedom. Many new drivers (especially young drivers) may not be able to afford to pay for a new car straight away so they may choose to buy their new vehicle through car finance.
It is not easy for most people to save up the money to buy a vehicle in one lump sum, a lot of new drivers may still be in apprenticeships, part-time work or full-time education, even a second-hand car will exceed many peoples budgets. Then, of course, there is the car insurance too which is estimated to set you back at least around £2000 per year if you are a new driver or in your late teens or early twenties. On top of this, there is also the running costs of the car, fuel, Tax and servicing and MOT all of these can add up. Car finance may be an option you may wish to consider.
Car finance makes buying, insuring and maintaining a vehicle more manageable. When you cost up the entire expense of running a car, car finance can be a suitable affordable solution.
Car finance essentially allows you to own a car without paying out a huge lump sum all at once, payments are spread out over several months (you can choose how long this is, the most popular length of time for car finance is usually 36 or 48 months) in bite-size amounts that can be as little as £40 per week in some cases. This way you do not have to wait years to save up to actually own a car.
Car finance makes buying a vehicle more manageable, this also allows new drivers to have more choice when choosing which vehicle to go for. You will not be restricted to buying an old used car because that’s all you can afford. For just a few pounds more per month, you may be able to go for a newer car with less mileage, this can also help with car insurance premiums as they should be significantly lower and in most cases, you should not have to worry about regular repairs on a newer car.
Buying a car on finance allows young people and new drivers who have recently passed their driving test to manage their money better. Vehicle ownership becomes more feasible for those who cannot afford an outright purchase of a new car.