‘I’m a driving expert – check this before | Tech News

Drivers fascinated by financing a car have been urged to make checks before agreeing with a view to keep away from common pitfalls, together with hidden charges. As the Supreme Court’s listening to over whether or not to overturn the Court of Appeal’s ruling that every one car finance agreements that featured a hidden commission have been illegal continues, many drivers are apprehensive about financing a new model.

However, Greg Wilson, CEO of Quotezone.co.uk, famous that financing a car comes with a lot of advantages as long as the motive force chooses the suitable plan for them. He suggested: “It is vital that drivers choose the right plan to suit their individual circumstances. We wanted to help young drivers and those looking to buy a car for the first time by researching the common pitfalls to look out for when signing up to a car finance agreement.

“Choosing the suitable plan could be tough and if drivers are in any doubt what’s best for his or her scenario, they need to search advice from a financial expert.”

In particular, Quotezone.co.uk suggested that drivers thinking about financing a car find the best plan for their needs, with four major types of vehicle finance generally offered.

These include hire purchase (HP), in which drivers make monthly payments with a view to owning the car at the end of the contract, or a personal loan, in which they give instalments to the lender in order to spread the cost of buying the vehicle.

However, under a personal contract purchase (PCP) scheme, drivers will not own the car for the entire time they are paying in instalments and will need to pay another fee at the end of the contract to receive it. In comparison, the personal contract hire (PCH) scheme does not entitle them to own the car at all.

Nevertheless, Greg highlighted that car finance schemes can still be beneficial, particularly at helping a driver boost their credit score.

He continued: “Car finance can help drivers improve their credit rating, building a credit document and demonstrating duty to banks and lenders when funds are met on time every month.”

However, the company warned that drivers must be able to keep up with repayments on their car finance deal to prevent their credit score from dropping. This could result in a number of issues, including making it harder to get a mortgage.