The basics of Car Finance.
Personal Loan Is a very popular option and offered by banks and building societies who usually offer the most competitive rates and this is often the most cost effective form of finance. Unlike the other options it also makes you a cash buyer and free to purchase anywhere you like. If you are buying a used car the best deals will usually be found when buying privately.
Hire Purchase is an option of finance where the car is not your property until the last payment is made and if payments are missed the car can be repossessed.
0% finance is sometimes available through brand dealerships for the purchase of brand new cars. It sounds great but be sure to investigate the options carefully. It may be difficult to negotiate a discount on the price and sometimes its better to arrange the finance separately and get the discount
Personal Contract Purchase is another brand dealership offering for the acquisition of new vehicles. Typically the down-payment is small and regular payments are made during a fixed contract period which might be for up to four years. At the end of the period you surrender the car and start again if you wish. The downside is that the car is never yours unless you pay the balance of the value at the end of the period and you will usually be required to stay within an agreed mileage limit.