Buying a New Car on Credit is Not as Straightforward as it Seems
Planning to buy a new car? A large percentage of motorists decide to purchase through some kind of credit, which is understandable because it is such a large financial decision. This is especially true when you are looking to buy new cars to the market, like the superb new Peugeot 5008. The huge seven-seater SUV has taken the industry by storm and emerged as a favorite in the fiercely competitive SUV market.
The 5008 also has a fantastic interior with ample space, high-quality materials and plenty of tech onboard. It drives very well for a vehicle of this size with a surprising amount of agility, as well as a good selection of powerful yet efficient engines. It is no surprise that this is one of the most popular new cars on UK roads this year and one that a lot of motorists are looking to buy on some form of credit.
Whilst buying on credit deals like a hire-purchase agreement, personal contract purchase (PCP) or even a personal loan may seem like a great idea, there are always complications that must be considered.
Whether it is the 5008 or any other vehicle, you’ll need to think about which finance deal meets your needs as there are several options to consider. Additionally, you may need to improve your credit rating, you will need to make sure that you can afford the repayments and running costs, consider the limitations that the deal might come with, and compare interest rates. These are just a few of the important decisions that you must consider, but there is another which is often overlooked.
Protect the Investment
Some motorists do not realize, but if the automobile were to be written off or stolen, your insurer will only pay out the current market value. When you factor in depreciation, this is a huge amount less than what the vehicle was originally worth and there will be a significant shortfall between the payout and amount outstanding on the finance agreement. Fortunately, there is an easy solution in the form of GAP Insurance. This will cover the difference between the payout and the amount outstanding, providing adequate protection and peace of mind.
Buying on credit can be an excellent way to get behind the wheel of the latest and best cars like the Peugeot 5008, but it is not without its complications. You should always fully research different types of credit, ensure that you are in the right financial position and consider additional protection in the form of GAP Insurance.
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