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Used Cars On Finance For £100 per month

Representative example: borrowing £6,500 over 5 years with a representative APR of 19.9%, an annual interest rate of 19.9% (Fixed) and a deposit of £0.00, the amount payable would be £166.07 per month, with a total cost of credit of £3,464.37 and a total amount payable of £9,964.37.

Can you get a car on finance for around £100 pm?

It may be possible dependant on your circumstances and what car you choose, here are some tips to help you out.

Choosing the Right Car
The first step in securing a finance deal for around £100 per month is selecting the right car. Typically, smaller and more affordable cars such as hatchbacks, compact SUVs, and city cars are more likely to fall within this budget. Consider cars like the Ford Fiesta, Vauxhall Corsa, or Renault Clio. Keep in mind the total cost of ownership, including insurance, tax, and fuel efficiency.

Understanding Finance Options
There are various car finance options available, including Personal Contract Purchase (PCP), Hire Purchase (HP), and leasing. Each option has its pros and cons, so it's essential to understand the differences and choose the one that suits your needs. HP agreements usually have lower interest rates and allow you to own the car at the end of the term. PCP offers lower monthly payments but may have higher interest rates.

Shop Around for the Best Deal
Don't limit yourself to the finance offers available at the dealership. Shop around and compare rates from multiple lenders, including banks, credit unions, and online finance providers. Use online comparison tools to get an overview of the best deals on offer. This will give you a better chance of finding a finance deal that fits your budget.

Save for a Deposit
Having a larger deposit can significantly reduce your monthly payments. By saving for a deposit, you'll reduce the amount you need to finance, which means lower monthly payments and less interest paid over the term of the loan. A substantial deposit can also increase your chances of being approved for finance and may help you secure a lower interest rate.

Consider Your Loan Term
The length of your loan term will impact your monthly payments. A shorter loan term means higher monthly payments but less interest paid over the term. Conversely, a longer loan term results in lower monthly payments but more interest paid. If your goal is to have monthly payments around £100, consider extending your loan term. However, be mindful of the total interest paid.

Getting a car on finance for around £100 per month is an achievable goal with careful planning and consideration. By choosing an affordable car, understanding your finance options, shopping around for the best deal, saving for a deposit, and considering your loan term, you can secure a great car finance deal that suits your budget. Take the time to do your research and find a deal that works for you. Soon, you'll be driving away in a car that fits both your needs and your budget.

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