If the total amount you have managed to save up for a deposit is a big round zero it does not mean your dreams of getting a new car are over. A Personal Contract Purchase or a PCP deal for short is a new way of financing. It allows for more flexibility in the way which we buy and finance cars.
What is a PCP deal?
Without paying a deposit upfront you can pay the leftover value of the car at the end of the contract. If you decide you would rather not keep the car, you can even skip this payment. The condition is you hand the keys back, swap cars and start paying the monthly instalments for a new car. If you choose not to do this, you can give the car back to the dealer and walk away without having paid a “deposit” for a car you were not going to keep anyway.
With less deposits and high value payments upfront you have greater flexibility. You can change cars more easily and do not have to save up for months to afford a car deposit.
A PCP deal is more difficult to come across than your average car financing deal. You can find them with certain specialized dealerships, like WP motors. If you are on the verge of qualifying for a No Deposit Car Loan, there are three main things the car financer will look at:
- How easily can you afford the monthly payments? Remember that, without a deposit, the monthly repayment amount is higher. The interest will also be higher as less of the total amount of the car is paid off.
- What is your job and how long have you worked there? Financers look for stability and enough income to support the payments. Ensure that the car repayment is only twenty percent of your salary so you can afford to pay for the car and account for any unexpected costs.
- How long have you lived at your house? Car financers see stability in your residential address as a plus.
The final decision is up to the lender. Remember, different financers will provide you with different interest rates and deals so it is good to shop around. For easy car financing, allowing you to earn cash at the same time, contact Earn-a-car by visiting our website.