The Different Car Financing Options Commonly Available - One2Rent
post-template-default,single,single-post,postid-13498,single-format-standard,ajax_fade,page_not_loaded,,qode_grid_1300,footer_responsive_adv,hide_top_bar_on_mobile_header,qode-content-sidebar-responsive,qode-theme-ver-14.1,qode-theme-bridge,wpb-js-composer js-comp-ver-5.4.7,vc_responsive

The Different Car Financing Options Commonly Available

The Different Car Financing Options Commonly Available

The Different Car Financing Options Commonly Available

For the common person, purchasing a car can be a highly complicated and expensive process. Bordering on prohibitive, the upfront cost forces many to take up financing plans, yet the wealth of options available stumbles us. Amongst the list of alternatives are hire purchase contracts, personal contract hire agreements and personal contract purchases.

Hire Purchase Contract

Under this option, you have to pay an initial deposit or down payment which amounts to around 10{b8d6c433ec428b4814b5d15ba918aaeb399ebd10910f88da6cc1004cb3fe2104} to 20{b8d6c433ec428b4814b5d15ba918aaeb399ebd10910f88da6cc1004cb3fe2104} of the total purchase price. The balance will be paid in monthly installments. It must be noted that this arrangement does not make you the owner of the car right after signifying your intent to be bound by the Hire Purchase Agreement.

You only become the rightful owner of the vehicle after completing all the installment payments. The nice thing about this option is that you can drive the car even if you are still not its owner. If you do not have enough money to buy a car upfront, then hire purchase is perfect for you.

Personal Contract Hire Agreement

If you are not interested in owning a car but need one for a specific purpose, then a personal contract hire agreement may be the right arrangement for you. In the personal contract hire agreement, the vehicle rental Singapore company will provide a period of the validity of the lease. The period is usually longer compared to ordinary rental contracts.

Upon the expiration of the agreement, you must return the car to the lessee. However, keep in mind that there is no option available for the purchase of the vehicle. The rental fees for this option may be lower compared to the hire purchase contract.

Personal Contract Purchase

This option has similarities with hire purchase agreements. Just like the hire purchase, you will be required to pay an initial deposit upon the execution of the contract with the automobile company. After that, you will be required to make monthly installments until the entire balance has been fully paid.

Additionally, a Guaranteed Future Value is set for the car. It is anticipated that the value of the vehicle will depreciate at the time you have completed its balance. As such, the amount to be paid is based on the Guaranteed Future Value. Because of this, the installment fees will be lower compared to the other financial arrangements.

Getting a brand new car may be a significant move for you but sometimes it may not be the best financial option. Instead, commercial vehicle leasing Singapore may prove to suit your needs better. If you have questions about the financial contracts, make sure to ask your dealer about it. The most important thing to do here is to read all provisions of the financing agreement before signing on the dotted line.

No Comments

Sorry, the comment form is closed at this time.