Peugeot 107 Finance Offers

Looking to get behind the wheel of a Peugeot 107 without breaking the bank? Financing can be a viable option. While the 107 is no longer in production, excellent deals can still be found on used models. Understanding the finance options available will help you make an informed decision.

Common Finance Options

Several paths exist to finance a used Peugeot 107:

• Hire Purchase (HP): This is a straightforward loan where you pay fixed monthly installments over an agreed term. Once you’ve made all the payments, including any option to purchase fee, you own the car outright. HP is popular due to its predictability and ease of understanding. However, you don’t own the car until the final payment is made.
• Personal Contract Purchase (PCP): PCP involves lower monthly payments compared to HP, as you’re only paying off the depreciation of the vehicle, not the full value. At the end of the agreement, you have three options: pay a final ‘balloon’ payment to own the car, return the car with nothing more to pay (subject to mileage and condition), or part-exchange the car for a new model. PCPs are attractive for those wanting lower monthly costs and flexibility.
• Personal Loan: You can secure a personal loan from a bank or credit union to purchase the 107 outright. This makes you the immediate owner of the vehicle. Interest rates on personal loans may vary, so shop around for the best deals.

Finding the Best Deals

Locating the most favorable finance offer requires research and comparison:

• Dealership Finance: Many used car dealerships offer finance packages. While convenient, compare their rates and terms against other providers. They might have special offers on specific models.
• Online Comparison Websites: Numerous websites allow you to compare finance deals from various lenders. This is a valuable tool for finding competitive interest rates.
• Banks and Credit Unions: Don’t overlook traditional financial institutions. They often offer competitive personal loan rates, especially if you’re an existing customer.
• Credit Score Matters: Your credit score significantly impacts the interest rate you’ll receive. A higher score translates to lower interest rates. Check your credit report beforehand and address any inaccuracies.

Factors to Consider

Before committing to any finance agreement, consider these factors:

• APR (Annual Percentage Rate): This represents the total cost of borrowing, including interest and fees. Compare APRs, not just monthly payments.
• Deposit: A larger deposit can lower your monthly payments and the total cost of the finance.
• Loan Term: Shorter loan terms mean higher monthly payments but lower overall interest paid. Longer terms result in lower monthly payments but higher total interest.
• Mileage Limits (PCP): With PCP, exceeding agreed mileage limits can result in significant charges.
• Car Condition (PCP): Returning the car in poor condition at the end of a PCP agreement can also incur extra charges.
• Affordability: Ensure you can comfortably afford the monthly payments without straining your budget. Factor in other car-related expenses like insurance, fuel, and maintenance.

Buying a used Peugeot 107 through finance can be a practical option. By understanding the different types of finance, comparing offers, and carefully considering the terms and conditions, you can secure a deal that suits your needs and budget.