Car Finance with Arnold Clark

Arnold Clark is one of the UK’s largest independent car retailers, offering a wide selection of new and used vehicles. Beyond just selling cars, they provide various finance options to help customers afford their desired vehicle. Understanding these options is key to making an informed decision.

Types of Car Finance Offered

Arnold Clark typically offers the following types of car finance:

• Hire Purchase (HP): With HP, you pay a deposit followed by fixed monthly installments over an agreed period. Once you’ve made all the payments, you own the car. This is a straightforward ownership route, suitable if you intend to keep the vehicle long-term.
• Personal Contract Purchase (PCP): PCP is a flexible option where you pay a deposit and fixed monthly payments, but the payments are typically lower than HP. At the end of the agreement, you have three choices: pay a balloon payment to own the car, return the car to the finance company, or trade it in for a new model. PCP is popular due to its lower monthly payments and flexibility.
• Personal Loans: While Arnold Clark primarily focuses on HP and PCP, you can also secure a personal loan from a bank or credit union to purchase a car from them. This involves borrowing a lump sum and repaying it with interest over a set period.

Applying for Car Finance with Arnold Clark

Applying for finance is usually straightforward. You’ll typically need to provide information about your income, employment history, and credit score. Arnold Clark will then assess your application and determine if you’re eligible for finance and at what interest rate. Factors influencing approval include:

• Credit Score: A good credit score significantly increases your chances of approval and can secure a better interest rate.
• Deposit Amount: A larger deposit typically reduces your monthly payments and the overall cost of finance.
• Affordability: Arnold Clark will assess your ability to comfortably afford the monthly repayments.

Things to Consider

Before committing to car finance, carefully consider the following:

• APR (Annual Percentage Rate): This represents the total cost of borrowing, including interest and any fees. Compare APRs from different providers to find the best deal.
• Total Cost of Credit: This is the total amount you’ll pay over the life of the agreement, including interest and fees.
• Balloon Payment (PCP): Be aware of the final balloon payment with PCP agreements. Ensure you can afford it if you plan to own the car.
• Mileage Restrictions (PCP): PCP agreements often have mileage restrictions. Exceeding these limits can result in extra charges.
• Early Settlement Fees: Understand the fees involved if you decide to settle the finance agreement early.
• Read the Fine Print: Carefully read and understand all the terms and conditions of the finance agreement before signing.

Getting the Best Deal

To get the best car finance deal with Arnold Clark, research different finance options, compare APRs, and consider your budget and long-term needs. Don’t be afraid to negotiate and explore alternative finance options from other lenders. Obtaining pre-approval from a bank or credit union can also give you leverage when negotiating with the dealership.