Buying On Finance

It goes without saying that the best and most financially viable means to buy a car - either new or used - is via an outright cash purchase. Obviously, however, not everybody is in a position to manage this and there are therefore several ways in which this problem can be circumvented such as Hire Purchase (HP), bank or building society loans, Personal Contract Purchase (PCP) and Personal Contract Hire (PCH).

With all of these schemes, it is essential to decide the length of time that you want the finance to run. Most banks and building societies tend to offer up to a five-year loan to purchase a car but if you can afford the higher monthly instalments it is worth trying to repay the loan over three years as your car won't have depreciated as much by the time you've paid it off as it will have done if you've borrowed the money over a longer period.

The most appropriate solution if you need to finance your purchase will depend on your individual situation and the lending rates on offer at the time but the best advice I can give you is to consider all your options very carefully and read the small print.

Honest John's Finance guide gives you a breakdown of the different options available to you from a bank loan to personal contract purchase and dealer finance.

Why not try the finance shop to find the right deal for you. We put you in touch with the top providers.

Dealer Finance