New year, new car? Weigh up the options

New year, new car? Simon Gray, of Credo Asset Finance, says weigh up the options.

For many, January is a time of 'out with the old, in with the new!' We will be thinking about new carpets, sofas, home improvements, electrical items but probably, more than the last four or five years, a new car may be on your list.

In 2014, with the economy, employment rates and people's confidence improving monthly, it may be time to consider a change of car. If you've held off, your current car may well be getting old, out of warranty and starting to cost money.

But is a new car really the sensible, cost-effective way? Shiny, yes; no other messy owners, yes; three years warranty or longer, yes; new tyres, yes; cheap finance, yes probably… what's not to like?

Generally, if a car attracts a low rate of finance (subsidised by the manufacturer) it is less likely to attract discount as well – there's only so much in the pot. And 0% finance often requires – to restrict this subsidy – a large deposit, typically 50%, which may be out of the your reach. Lower deposits still mean a good, but slightly less attractive, rate – 4.9 to 7.9% is the norm.

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Don't be blinkered by price boards advertising low rates. Look outside the box of the brand new car – consider other options. Demonstrators, ex rental cars, late-date used cars still have many benefits of a new car – a long warranty, few miles on the clock etc. And by shopping around for the right finance deal, they can still attract good, low-rate finance but not at the expense of the price of the car.

Brokers like Credo, have excellent rates available. APRs from 5.9% on a full repayment loan are achievable and PCP deals that attract many to new cars are also available here from 6.9% APR. Full terms and conditions are available from Credo, written details on request, a guarantor may be required.

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Weigh up all the options, a late-date used car can be available at large discounts against a new price and if the finance rate is the 'carrot' then these are available at commercially low rates from brokers like Credo.

A very prosperous new year to you all.

Credo Asset Finance is at 85 Yarmouth Road, Norwich, NR7 0HF. Telephone 01603 703180, email or visit the website at

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