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|SMMT comment - Hitachi Capital|
|Monday, 09 May 2016|
In light of today’s announcement from The Society of Motor Manufacturers & Traders (SMMT) that car registrations grew again this month, this time by 2.0%, Gerald Grimes, Managing Director, Hitachi Capital Consumer Finance, comments on how continued low interest rates and the rise of alternative payment methods are fuelling growth in the industry:
“We saw a marked rise the number of people taking a loan to buy both used and new cars – a 12% increase month on month. This shows that the growth of car sales is being driven not only by a sustained period of low interest rates, but also the availability of alternative funding models. Consumers are now firmly in the driving seat and able to arrange their own finance 24/7 online to get the deal they want, when they want it”.
Here are some simple tips from Hitachi Capital to help people planning to buy a car:
1. Know your options: Make sure you are aware of all the different options available to you, do you want to own the car outright, or are you willing to lease it? There are advantages to both, so it makes sense to think about the likely mileage you’ll do, how often you change your car, the depreciation on new cars etc, before you make a decision.
2. Be realistic: As with any big purchase, it’s important that you shop around for the best price you can afford. If you are taking out a loan or credit, you need to be able to make the monthly repayments back consistently, as any missed payments will affect your credit record and have a long term impact on your finances.
3. Do the maths: Be aware of the total cost of buying a car – it’s not just the deposit and monthly repayments. Additional costs of fuel, insurance, maintenance and road tax are important to consider when purchasing a vehicle. It all adds up.
4. Check your current financial situation: Before you make a loan or credit application to buy a vehicle, make sure you check your credit report to make sure everything is accurate and up to date. If your credit score is low, it’s may impact your ability to take out a loan and you may need to take the time to improve this first.
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