Which Is The Right Finance Option For You? | Baileys New Cars Direct

Which Is The Right Finance Option For You?

Oct 12, 2020

PCP/PCH/BCH

Back in the days before the World Wide Web, car ownership was a relatively straightforward transaction. Buyers would pay the cost outright or they would get a bank loan. Alternatively, they would put down a deposit and pay the rest over a period using what was then called hire purchase. Hire purchase is just what it sounds like: A regular amount is paid over an agreed period of time at the end of which the car is fully owned by the buyer. Things have moved on.

 

Obviously, it is still entirely possible to purchase a vehicle outright, either with cash or a loan. For most people though, the trend towards a personal or business contract seems to be the way forward. This is because it is possible, through leasing arrangements, to take possession of a new car at a reasonable monthly cost to suit personal budgets. These deals can often optionally include servicing, vehicle excise duty and even insurance. 

 

The 21st Century Way

Car finance has become very much more flexible, available and with many incentives, but with that flexibility comes a degree of complexity. It can sometimes be a bit confusing, trying to understand which is the best way forward based on need, circumstance and personal finances. Hopefully, this handy guide will shine a light on the best deal to suit: