The most popular form of finance options are usually those offered by the dealer. Dealers do offer some good finance deal out there but generally you can expect to pay a higher rate than if you arrange your own loan. Use the dealer's 0% finance deal if possible, but be aware it's possible the vehicle price will be higher if you get 0% finance deal, so check the price without it elsewhere.
A personal loan allows you to borrow a set amount over a set period of time. Repayment is made in fixed monthly instalments over your desired period. Personal loans are a simple and cost effective way to borrow. Shop around as there are lots of lenders and loans on the market, and you can save a fortune by choosing the right one.
Use a 0% credit card if available to you. Ensure you can repay the credit card or transfer the balance as required when the rates increase. Ensure you do make repayments so that you are not left with a large loan outstanding on your card while your car continues to depreciate. It should be noted that most dealers would charge between 1.25% and 2.5% for using a credit card but this can still work out a cheap way to pay.
PCP (Personal Contract Plan)
Personal Contract Plans allow you to purchase a new vehicle without having to pay for it all. Pay a small deposit and the remainder over 12-48 months. A pre determined future value of the vehicle will be given. At the end of the term, you can buy the vehicle or hand it back.
Contract Hire & Lease Hire
To be eligible for Contract Hire you need to be a business that has been trading for 3 years. Simply choose the duration of the hire and your annual mileage. There is usually an initial payment equivalent to 3 months hire. At the end of the duration simply hand the vehicle back.
Personal Contract Hire
Personal Contract Hire is similar to Contract hire above except available to private individuals. You just need to add the VAT sum to your monthly payments.
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Fifth Gear Manufacturers' Deals & Offers - www.fifthgear.five.tv
An overview of current deals on offers being offered by UK main dealers such as free upgrade, cheap finance offers or free insurance deals.