1. A personal loan is often the cheapest way to finance a car purchase

but you’ll have to shop around, to find the best annual percentage rate (APR) of interest.

2. A hire purchase dealhire purchase deal (HP) is the next most straightforward way of financing a car purchase.

3. The personal contract purchase (PCP) is currently a very popular way to pay to drive a new car.

4. Personal contract hire (PCH) is a form of leasing, where you pay a fixed monthly amount for the use of a car,

as long as the mileage doesn’t exceed a specified amount.

5. Dealer finance

Dealers often offer their own finance packages as they try to squeeze more profit out of a sale.

You’ll need to check the total amount you’ll have to pay back and then compare this to other deals on the market.

And don’t be afraid to haggle: dealer finance rates are often negotiable. 

And remember to always get a quote in writing, to ensure that the dealer sticks to it.