RAC Car Finance offers various financial products to help individuals purchase new or used vehicles. Understanding these options is crucial for making informed decisions and securing a loan that aligns with your budget and needs.
Types of Car Finance Offered by RAC:
- Hire Purchase (HP): This is a traditional car finance agreement. You pay a deposit (optional) and then make fixed monthly repayments over an agreed period. Once all payments are made, including the option to purchase fee, you own the car. HP is a good option if you want to own the car outright at the end of the agreement.
- Personal Contract Purchase (PCP): PCP is a popular option that involves paying a deposit, followed by monthly repayments. However, the monthly payments are typically lower than HP because you’re not paying off the entire value of the car. At the end of the agreement, you have three options: return the car, pay a final “balloon payment” to own the car, or trade the car in for a new one and start a new PCP agreement. PCP is attractive if you like driving new cars regularly.
- Personal Loans: RAC also offers personal loans that can be used to purchase a car. This provides you with a lump sum of money which you repay over a set period with fixed monthly payments. A personal loan gives you immediate ownership of the car, and you’re not tied to a specific dealer or finance company.
Factors to Consider:
- Interest Rates (APR): Compare the Annual Percentage Rate (APR) across different finance options. The APR includes interest and any other charges, providing a clearer picture of the total cost of borrowing. Shop around and compare RAC’s APRs with other lenders.
- Deposit: The size of your deposit can impact your monthly repayments. A larger deposit typically means lower monthly payments, but it also requires a larger upfront investment. Consider how much you can comfortably afford to put down.
- Loan Term: The length of the loan term affects your monthly payments. Longer loan terms result in lower monthly payments, but you’ll pay more interest overall. Shorter loan terms mean higher monthly payments but less interest paid over the life of the loan.
- Affordability: Before committing to any car finance agreement, carefully assess your budget and ensure you can comfortably afford the monthly repayments. Consider other expenses like insurance, fuel, and maintenance.
- Credit Score: Your credit score plays a significant role in determining the interest rate you’ll be offered. A good credit score typically results in lower interest rates, saving you money over the loan term. Check your credit score before applying and take steps to improve it if necessary.
Applying for RAC Car Finance:
You can apply for RAC Car Finance online or over the phone. You’ll typically need to provide information about your income, employment, and credit history. RAC will then assess your application and determine if you’re eligible for finance.
Important Considerations:
- Read the terms and conditions carefully before signing any agreement.
- Understand the implications of missing payments, as this can negatively impact your credit score and potentially lead to repossession of the vehicle.
- Consider GAP insurance to protect yourself against financial loss if the car is written off or stolen. GAP insurance covers the difference between the car’s market value and the outstanding finance balance.
By understanding the different types of car finance offered by RAC and carefully considering your financial situation, you can make an informed decision and secure a loan that’s right for you.
1000×600 rac finance products rac wa from rac.com.au 
500×573 oneit rac finance from oneit.com.au 
1000×1419 rac car insurance tarn radford graphic design from tarnradford.com.au .png?w=1024&q=80&fm=webp&lossless=0)
1000×1000 search buy sell cars rac cars from cars.rac.co.uk 
354×679 rac from www.rac.com.sg 
558×1224 rac financial rouie ilustrisimo from eyorsogood.com 
1280×800 vehicle rac approved dealer rac approved signature car specialists from www.signaturecarspecialists.co.uk 
474×196 rac car insurance login page from rac.insure-systems.co.uk 
800×450 save time money business rac fuel card rac from www.rac.co.uk 
2000×500 news advice rac read rac from www.rac.co.uk 
164×164 rac car insurance voucher codes raccoukcar insurance love voucher from www.lovevoucher.co.uk 
1563×1563 rac trading rac company from rac-limited.com 
1080×540 save thousands car finance from www.lendinglegend.com.au 
1920×1280 rac car insurance review forbes advisor uk from www.forbes.com 
1410×350 car finance deposits racq from www.racq.com.au 
1440×793 racing car finance lease hire purchase loans jbr capital from jbrcapital.com 
863×777 car finance nz apply today rostron finance from www.rostron.co.nz 
474×313 car finance unlock power affordable vehicle ownership invest from www.investintello.com 
2087×1392 auto club member rate rac parks resorts from parksandresorts.rac.com.au 
1152×540 rac love cars case study milestone creative from www.milestonecreative.co.uk 
1200×800 ract car insurance ract from www.ract.com.au 
700×338 flash rac deal ps personal breakdown cover save ps rac from www.latestdeals.co.uk 
300×300 rac car insurance ps reward referring friends cashback from www.aklamio.com 
876×652 rac auto services perth reviews contact details mechanicar from www.mechanicar.com 
1281×800 rac contacting insurance car dont from www.telegraph.co.uk 
1000×1000 rac auto services auto repair newcastle st perth city perth from www.yelp.ca 