Credit Guidance
Financing your vehicle
When considering finance for a vehicle we advise that you research and know of as many different ways to do this as possible. If you’re not paying cash then it’s likely you’ll look to finance it through either Hire Purchase, Personal Contract Purchase or a Personal/Bank Loan.
At First Response we only offer Hire Purchase as a way of getting a vehicle so if you’re looking for PCP or a Personal Loan you will need to look and apply elsewhere.
Work out your monthly budget
Before you’ll be approved for any loan the lender (finance company or bank) will ask you some questions to make sure you can afford to pay the loan back now and in the future. This is responsible lending as no company should be lending money to somebody who cannot afford it in the long run. You can use the following tools so see if (and how much) you can afford to borrow so you’re aware before applying:
Below we’ve given a brief overview of some different options available when financing a vehicle (remember, we only offer Hire Purchase) and we cannot advise on any other finance product. There may be other ways to finance a vehicle we’ve not mentioned so we recommend you do your own research to find your best option.
Hire Purchase
The finance First Response offer
This is where a finance company will buy the vehicle from a dealership and then hire it to you over a certain amount of time. You pay monthly and at the end of your contract you will own the vehicle.
Hire Purchase Pros & Cons
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Personal Contract Purchase
A popular way to finance new vehicles. You tend to put down a deposit, pay monthly repayments and then have one of three choices at the end: give the vehicle back, pay a final sum to own the vehicle or use the vehicle as a deposit for a newer vehicle and start a new contract.
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Bank Loan
If you’re able to get a bank loan then it may be your preferred option as the rates will likely be lower than a Hire Purchase. Unfortunately this isn’t always an option for many people as the amount you can borrow may be limited.
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Credit Cards
Some people may be able to get a credit card with a lend that’s large enough for them to buy a car, if this is the case then it could be a cheaper and better option for you in the long run. Not everybody has this opportunity though as you do tend to need a good credit rating to get a low interest or high amount to borrow.
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Whatever route you decide to go down to finance your next vehicle you need to be sure it’s the right one for you. Although we’ll do our best to make sure you can afford the finance you need to be aware of any changes that are happening in the near future (retirement, redundancy, pregnancy etc.) which may affect your income and therefore your ability to pay back the loan.
We also advise you read as much information about us or any product before applying as it’s likely that any application will show on your credit file.
You can read our blog on improving your credit score if you’re looking for more help on your credit file or you can find independent information on the following website: