This is where it gets interesting and depends on your situation, ask your self do you have a good credit rating and are you likely to be offered finance?
The below is our opinion only and you must make your own opinions as to what suits you best.
We strongly recommend that you check the internet for further information.
If you have the finances you may be able to buy your car outright. Or if you can arrange a private loan through family or friends this may well give you the opportunity to purchase outright and avoid any interest or loan charges, in addition you will not be liable for any damage affecting future values at the end of a contract.
The biggest issue is how much can you afford and what will you be able to get for that budget. You should consider your usage if you anticipate a low annual mileage a higher than average mileage car may offer you the opportunity of a “younger later registration plate”.
Hire purchase may usually be considered as simply a loan to help you buy the car, the bigger deposit that you can pay the lower your monthly payments will be.
How long are you happy to take the finance for? The longer the period the lower monthly payments will be common terms are 36-60 months. You may choose a monthly payment to calculate your budget, if you decide that you are happy with say £100.00 over 36 months yu will have a lower budget than paying the same amount over 60 months.
There are options for zero interest and in some cases a balloon payment similar to a personal contract plan.
At the end of the loan period if you have paid all invoices you will own the vehicle.
Personal Contract Plan (PCP)
Without doubt many people are now using this option and manufacturers offer incredibly attractive looking deals on new cars with low and sometimes zero deposits and what can look like low monthly payments. As with anything there are pro’s and cons particularly if you exceed agreed mileage, we have copied the following information from Money Saving Expert, please read the full article here: