1. A personal loan is often the cheapest way to finance a car purchase
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.
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.
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.
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,
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.
as long as the mileage doesn’t exceed a specified amount.
5. Dealer finance
5. Dealer finance
Dealers often offer their own finance packages as they try to squeeze more profit out of a sale.
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.
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 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.
And remember to always get a quote in writing, to ensure that the dealer sticks to it.