When you are purchasing a car on finance, you are primarily looking to keep costs down as much as possible. There are numerous aspects of a deal that you should consider, but you should also think about making sure that you avoid having to pay additional penalty charges relating to finance and leasing. Here, we will provide tips on how you can ensure you will only be paying what your plan requires as opposed to additional penalties later in the agreement.
First of all, think about how much you will be using the car when it comes to mileage. If you know that you will racking up a lot of miles on a weekly basis, then you should agree a higher maximum mileage in advance, because if you opt for a lower figure, you may exceed it regularly, thus resulting in additional charges. If you can get a smaller mileage and stick to it, then you will end up saving a lot of money, but if you go low and end up struggling to stick within your predetermined boundaries, then it will quite literally cost you in the long run.
Another step to take would be to make a larger deposit payment in advance of the agreement beginning. By paying more beforehand, you will ultimately be paying less per month during the plan itself. This means that you will be in a stronger position to keep up with the regular monthly payments, especially if you are aiming to keep costs down due to a small budget in the first place. In the unlikely event that you would fall behind on payments, penalties would come as a result, so by working out a larger deposit, the chances will be lower that you would not be able to keep up with the normal payments.
Finally, the most obvious cause of a penalty charge is when the vehicle itself suffers significant damage beyond the usual wear and tear. Therefore, keeping your car in the best possible condition at all times, and addressing areas of concern should they ever arise, is highly recommended. It is one thing for the motor to have a minor fault or for there to be small scratches inside the vehicle that do not impact its functionality, but when the car has major problems that reduce its market value and its general efficiency, the dealer will look to charge you a substantial penalty to make up the monetary difference. Therefore, to avoid such a scenario, look after the car as much as you possibly can.
Read more about how you can avoid finance and leasing penalty charges here