These days, there are so many different ways for a motorist to get behind the wheel of a car that it can be quite confusing and daunting when looking to change automobiles. Here are a few definitions of the type of ownership and what type of motorist they are best suited to.
New
An easy one to start with, buying a new car simply means that you will be the first owner. Although this can be very expensive, new cars have no history to worry about, the buyer can choose the exact spec, you get full warranty and new automobiles will have the best technology and fuel efficiency.
Used
The majority of motorists opt for a used car, which means that you will not be the first owner. This is much more affordable than buying new, plus you do not have to worry about depreciation which can be as high as 40% after just one year of ownership. You have an enormous variety of cars to choose from (from both private sellers and dealerships), but there is always an uncertainty about the history of the automobile and many used car scams to look out for.
Leasing
Leasing is becoming an increasingly popular way of driving a vehicle as it provides the ability to drive new cars every few years without the worry of depreciation. It simply involves making fixed monthly payments for an agreed period and then returning the automobile at the end of the agreement, where you can then arrange a new lease deal from companies like Car4Leasing.
Finance
Many people are unable to pay the cost of a new car upfront, which is why financing the vehicle is such a popular option – this involves paying a fixed fee over a period of time until you have paid the value of the car. Here are the two main types of finance:
PCP – Personal Contract Purchase involves paying a deposit and making monthly instalments which are typically smaller than other forms of payment, but at the end you can either pay a “balloon payment” and own the vehicle, walk away from the deal or use the value to negotiate a finance deal on a newer model.
HP – Hire Purchase is a simple form of finance where a deposit is put down and monthly payments are made with the option to buy at the end of the contract.
These are the main ways to get behind the wheel of a new or different automobile, each of which has their own advantages and drawbacks to consider.
