Business Finance

Zero Road-Tax Cars on Finance

With modern motors rewriting the book on automotive technology, many are turning to innovative models such as electric cars on finance and plug-in hybrids, not only to keep up with trends but also to reap the benefits, one of those being a positive impact on the environment compared to traditional vehicles. Back in 2017, the road-tax laws changed, meaning that drivers will now pay a fixed amount regardless of how much carbon dioxide (CO2) their cars on finance emit, as opposed to the way things were in the past when the road tax would increase based on CO2 emissions. Now, when you factor in that modern cars essentially emit very little or no CO2 whatsoever, the upshot is that these cars are pretty much zero road-tax vehicles, making them even more enticing to customers beyond their capabilities and the benefits they bring to the environment especially with global warming warnings. 

One sure way of having an environmentally friendly car is by buying it using a car finance plan and this is where you choose your options: For more about different car finance packages checkout Accept Car Finance resource page. 

  1. Personal Contract Purchase (PCP)
  2. Hire Purchase (HP) 
  3. Personal loan

Personal Contract Plan

What To Be Aware Of When Getting PCP Car Finance Package

It’s one thing to pick out a car that suits you and provides a smooth, easy-going driving experience, but if you have the budget to do so, why not consider a luxury car? These are vehicles of the highest possible standards, from functionality to feature sets to the materials that are used to build the car. Luxury cars are a must-own for drivers who have the money to invest extra in their vehicle of choice, and as you might imagine, there are plenty of great luxury cars to choose from in today’s market, a couple of which we have highlighted in today’s article but also good on the environment.

The time may have come for you to make a Personal Contract Purchase (PCP), and you’ll know from visiting our website (PCP Missold) that we are experts at handling situations where PCP has been mis-sold. In order to prevent this from happening in the first place, though, there are a number of key factors which you should be aware of, and we have highlighted some of those here.

To begin with, it is vital for you to look at the terms and conditions in great detail. It will be the hidden terms of the paperwork which can often see people ripped off, so it is essential that you carefully check what you are signing up to, and not to rush through the process or to focus on one aspect and disregard the rest. 

Next, think about the condition of the vehicle. You don’t want to agree to a mileage so low that you’re barely on the road anyway. Work out how many miles you are aiming to cover between work and socialising, then factor in the state of the car, and find a suitable middle ground.

Lastly, early termination should be thrown into an agreement. A couple of years is usually the best compromise, but of course you need to make sure that all of the terms are suitable and fair before you sign up to anything, and ignore their attempts to rush you or try to speed you up, because this usually means that they have an ulterior motive, meaning that the PCP agreement should not be signed.

Hire Purchase

Car hire purchase (HP) is a car finance plan. After paying a relatively low deposit, you hire your car with the option to buy it by the end of the contract. 

Potential risks of Hire Purchase. 

My personal opinion is buying a car on hire purchase has more advantages than disadvantages. 

  • Failure to keep up with monthly repayments means that the vehicle can be repossessed, as it is used by the finance provider to secure the loan. 
  • You do not own the car until the final instalment has been paid.
  • HP customers bear more of the risk of depreciation than with PCP

However, after saying all these, hire purchase does not require a large final payment to be made to become the owner. In the UK, most independent car dealerships will often provide better dealer car finance dealer than franchised dealers. A good example is Rix Motors, in Cheshire. Being an Independent dealer, they have a wider choice of cars, as it’s much easier for them to stock different manufacturers (BMW, Mercedes-Benz, Land Rover, Audi, Nissan, Toyota, Vauxhall etc). They only sell nearly new cars meaning they are the crème de la crème and on top of that, because they have 1000’s of cars they are cheaper and you will always find your dream car.  

Whatever the case, though, if you choose to buy a car on finance, weigh the pros and cons of which finance package you choose. At the same time, it’s worth considering the type of car you purchase. 

Keep an eye out for our next article where we will be discussing both electric cars and plug-in hybrids and this will be available on Simba Digital news section. 

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