New automotive technology is great. According to leading UK lender NowLoan, more of us than ever before are showing an interest in buying hybrid cars. That is great news for the environment, but is it such good news for our bank balance? The truth is that hybrid cars are very expensive and many who would like to afford them, struggle to do so.
What is the answer? Even people with good credit struggle to finance new hybrid car purchases. Of course, that is not the complete picture. Buying a hybrid car is one thing, keeping it running and service is also expensive. No wonder UK car buyers are turning to used car lots and garages for their next car purchase.
How To Finance A New Car
At the moment, the UK government is not providing any finance schemes that help to make your hybrid car purchase or ownership cheaper. It is all very well expecting UK car owners to switch from diesel and petrol, but according to NowLoan, financial incentives would encourage more car drivers to switch.
In the meantime, many UK car buyers are still choosing to opt for petrol or diesel versions. Breaking this trend is not going to be easy. Most car drivers already pay high fuel prices at the pumps, making it hard to save up for a larger deposit.
Financing Your Next Car
What is the future of car finance in the UK? Today, UK car buyers still see the car as a throw-away item. With the cost of hybrid cars, this is going to have to change. No longer are we going to be able to keep our cars for just two or three years? In the future, car financing will need to be made available for a longer period of time. Not only will this help car buyers to spread the cost of their motoring costs, but it will mean fewer cars are going to end up being returned to car dealerships.
What does this mean for the car industry as a whole? It could mean UK second handcar prices will increase compared to current ones. The UK has long been famous for its low prices on second-hand cars. Could this be a thing of the past? All indications are that even second-hand cars are going to cost more in the UK. Financing your next car purchase will be a challenge no matter what way you choose to look at it.
Shopping Around For Car Finance
We often shop around for a new car. But, something that we don't do traditionally in the UK, is to shop around for car finance. That is something that is going to have to change. Instead of contacting your local bank, accepting dealership finance or finance deals from used car lots garages, it would be better to check out independent finance companies.
Independent loan companies often come up with more creative finance solutions than traditional lenders. Next time you go to buy a new car, it would be a good idea to find out what independent finance companies can do for you. It is the best way you make sure you can drive away your dream car from your local used car lot or garage.