Buying a Car- Your Options

When it comes to buying a car, there are many different options, and not all of them mean that you will actually own the car. However, if you need a car urgently or can’t wait until you have the money upfront, there are a variety of options available to you.

Save Up

It is widely agreed that saving up and paying with cash is the best way to pay for your car, usually assuming that the dealer will offer you a discount if you do. This way you will also avoid interest fees that come with loans, hire purchase or a credit card payment.

A Personal Loan

One of your options for buying a car if you can’t save up the amount in time is to take out a personal loan. Make sure you look at the interest rates and that you are aware of how much you’ll have to pay back. Most garages will offer a finance deal, but it may be worth looking at competitors on a price comparison site before you accept.

A Credit Card

This is more of a dangerous option, but if you have a good enough rating to get a credit card with a 0% interest then go for it. If you can pay it off before the 0% interest period ends, then you won’t pay anything in interest. However, if you know that you can’t don’t go for this option as it is an easy route into debt.

Hire Purchase

A hire purchase means that you pay a deposit and you then pay off the rest of the money in instalments while you have use of the car. When you have completed the payments, the car is yours. If you fail to complete the payments, then the car is repossessed. This type of purchase is great if you have saved a sum of money, but not enough to buy the car outright. It does mean that you’ll be paying more than the car is worth, and the car will depreciate in value as you pay the price.


Private Car Leasing in the UK means being able to drive a car and update it for a new one at regular intervals. There are two ways to lease a car, Personal Contract Hire and Personal Contract Purchase. A personal contract hire lease means paying a deposit and then monthly instalments as you use the car. This arrangement means that you’ll never own the car outright, as you will hand the car back at the end of the lease. A personal contract purchase is similar to a hire purchase, but at the end of the contract, you pay a final amount based on the car’s value to own the car. You can alternatively part exchange the car for another vehicle or hand it back to the leasing company. You should make sure that any mileage limitations are realistic as this could cost you later.

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