Youve passed Now you just need a car

Posted in: Car Insurance, News.

You’ve passed! Now
you just need a car…

Passing your driving test is one of the most thrilling
experiences of your life. In an instant, you are given unlimited access to the
nation’s roads and are free to explore every town, city, village and hamlet out
there. But after the expense of driving lessons and the costs incurred from
just sitting the test, many of us are not in a position to buy a car straight
away.

Fortunately, shelling out a lump sum of cash is not the only
way to get your hands on a vehicle these days. Financing a car can happen in a
variety of ways and, as long as you make sure you read the fine print on the
deal you choose, you can get yourself behind the wheel straight away without
having to break the bank.

Car hire is
sadly not an option for new drivers. All car rental outlets will require
customers to have held a UK licence for at least 12 months, so even though you
might be itching to get on the road with just a few days until your new car arrives,
taking out a rental car is not an option.

A car loan, on the other hand, could be the ideal option for
a new driver who can’t afford to buy a car out right straight away. A car loan
is an unsecured personal loan that new drivers can obtain from the bank, or
from a building society, finance company or another lender. These kinds of
loans are regulated under the Consumer Credit Act and drivers would likely have
to undergo a risk assessment by the lender of the money before a loan could be
made. Once the driver has paid off the loan, they will become the outright
owner of the car. These types of loan are only recommended to drivers with a
stable, secure source of regular income, as reneging on unsecured loans can
lead to severe financial problems.

Another option for new drivers who have some money behind
them but not quite enough to buy the car they want outright is Personal
Contract Purchase, or PCP. This involves the down payment of an initial sum,
followed by a series of low monthly payments thereafter, and finally a larger
payment known as the Guaranteed Future Value (GFV). The GFV is based on the
annual mileage of the car as stipulated by the driver. This method of payment
is particularly popular amongst people looking to finance a car, as the buyer effectively
only pays for the monthly depreciation of the car, as well as interest on its
remaining balance, before buying the car for a previously agreed price.

Other options for financing a new car include credit card
financing and mortgage top-ups, although these are potentially higher risk
options.

Tags: 17 year old insurance, car insurance, get insured, learner driver insurance, new driver insurance, pass plus insurance