💰Car finance options include cash, HP, PCP, and PCH/leasing.
🔒PCP and PCH/leasing provide flexibility at the end of the term.
🚗HP allows you to own the car at the end of the term.
🔄PCP and PCH/leasing allow you to upgrade to a new car after the term.
🏦Cash is a straightforward option, but may not be the most cost-effective.
Which car finance option is the cheapest?
—The cheapest car finance option depends on various factors, such as the car's value, interest rates, and deposit amount. PCP and PCH/leasing often offer lower monthly payments but may have higher total costs in the long run.
Can I own the car with PCP or PCH/leasing?
—With PCP, you have the option to own the car by paying the predetermined balloon payment at the end of the term. PCH/leasing is a long-term rental with no option to own the car.
What happens at the end of a Hire Purchase (HP) agreement?
—At the end of an HP agreement, you become the owner of the car after making all the agreed-upon monthly payments, including any interest and fees.
Which car finance option offers the most flexibility?
—PCP and PCH/leasing offer more flexibility at the end of the term. With PCP, you can choose to return the car, trade it in, or purchase it. PCH/leasing allows you to hand the car back and start a new leasing agreement.
Is paying cash for a car the best option?
—Paying cash for a car is a straightforward option, but it may not be the most cost-effective. By financing a car, you can spread the cost over time and potentially afford a better model.
00:00In this video, we discuss the four different ways to finance a car.
03:43PCP and PCH/leasing provide more flexibility at the end of the term.
06:31Hire Purchase (HP) allows you to own the car at the end of the term.
06:58PCP and PCH/leasing enable you to upgrade to a new car after the term.
07:54Paying cash for a car is a straightforward option but may not be the most cost-effective.
