Peace of mind car finance, worth the headache
As the economical situation gets worse and worse car companies are finding ways to stop the free fall in sales. One company that is offering an innovative solution for buyers is Ford owned car manufacturer Volvo. The scheme Volvo is proposing is called “Peace of mind finance”. The idea behind Peace of Mind finance is to give buyers the confidence to buy a new Volvo despite the current economical insecurity.
What is the Peace of Mind deal about?
The deal is that if you buy a car at one of Volvo’s car dealers with Volvo finance you will get a complimentary personal protection insurance (PPI) in case the borrower loses his job. Volvo feels that the main reason people are currently shying away from buying a new car is the fear of losing their job and being unable to afford the monthly payments. Volvo seek to fight this fear by providing a personal protection insurance that will pay for the monthly installments if the borrower loses his job.
Remember however that attaining this type of loan is dependent on fulfilling a number of requirements and applying before the 30th of June.
This is a good offer, a personal protection insurance is an expensive type of insurance coverage that would increase your monthly payments considerably. Having a personal protection insurance is a relief when we work hard and inevitably fall down either legally or financially.
How to qualify?
Qualifying for this type of finance is rather simple, although not always attainable for all customers. Volvo’s finance arm will need to accept the proof of income and approve the loan based on the customers credit rating and collateral. Then an agreement is signed by the borrower which includes a self declaration of eligibility for the “special” mortgage protection plan.
Buying a car in today’s environment is a problem, however it is also a necessity. The question is how far do you feel you should get into debt for the car you need. Many worry that if they buy a new car or the car they want they might lose it altogether if they lose their job. This has caused many to shy away from buying on credit. It is not a bad thing to prefer buying with cash. In fact it is the buy now pay later culture that might have put us in the economic mess we now are, or at least contributed towards it.
For these reasons this “peace of mind” scheme of Volvo promises to attract some attention. You must keep in mind however that to qualify for this peace of mind scheme you must go through Volvo’s finance, which may or may not be the best finance you can get. It is therefore a matter of checking that the deal you are getting with this scheme or any other is at least as good as what you can get with other finance providers.
Regardless of the choice you make, this scheme might help people to see the importance of having appropriate coverage when taking on large loans. In many countries like Spain it is a legal requirement to have life insurance so that if the worst happens your family does not have to pay your loans.