We have previously discussed the benefits of having a car finance plan where you would not be required to pay a deposit on top of the regular monthly payments. Today, we will focus on this subject again, but in an alternative manner: by taking three examples of situations that are very much different, but all of which reap the benefits for the driver of not having to be concerned with paying out a deposit.
The first scenario concerns a very low-priced car finance plan, where the motorist is paying out less than £100 each month for their vehicle of choice. There will be many factors that will lead to a driver opting for a car that is of such a small price point, but the cost is undoubtedly the biggest. The fact that they can save money by entering a finance plan of this nature is crucial. Therefore, why would they wish to be paying a large deposit, even if it then means that they are paying a lot less per month? Assuming that their vehicle of choice provides the opportunity to do so, not having to pay a deposit means that the drop-down monthly price is all they will have to fork out for the duration of the agreement.
The second scenario is one that sits in the middle of the road so to speak: it is for the motorist who is paying what would be deemed the average market price for a car on finance, somewhere in the £300 per month range. For a driver who is paying what would equate to around £75 per week, this will already be taking an important percentage of their monthly income, more so when you factor in such add-ons as a mortgage. Therefore, once again, it is more than beneficial for them not to have to pay a deposit on top of that, for this could end up making the vehicle cost a lot more money due to the value of their chosen vehicle being higher.
The third and final scenario is based on someone paying high-level cash for their vehicle, perhaps in the £600-£800 per month range, or maybe even higher than that. Now, if someone is paying top-level dough on a monthly basis for their vehicle, then the probability is that money will not be of great concern to them. But it would still make a big difference to their finance plan if a deposit was not a factor, not least because, for a top-of-the-range vehicle, the deposit would be at a peak level, to the point that even for those who can afford such cars, it might make such a purchase problematic on a financial level.
So, as you can see, whether a car finance plan is for a vehicle on the low, medium or high end of the pricing scale, not having to worry about a deposit on top of monthly payments is a huge boost for motorists regardless of what vehicle they are buying or have bought.
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