subject: Car Finance [print this page] Are you constantly annoyed by the varying terminologies that involve a car finance scheme? There is no need to worry as everything is as easy as 1-2-3. Here are some of the types of car finance deals that you can find in the market today:
1.Low payment plan a low payment plan is a type of car financing that entails you to pay low monthly payments at the beginning of the term and make a balloon or lump sum payment at the end of the contract. The lump sum payment is like the icing on the cake as it signifies your true ownership state of the car.
2.Personal contract purchase or PCP PCP is a form of vehicle financing that is similar to a normal car lease. You simply follow the yearly mileage requirements and comply with the prescribed monthly payments over the life of the lease term. The monthly rates will depend on a variety of factors such as the make and model of the car along with the amount of advanced deposit or down payment that you are willing to make. PCP is ideal for those who always want a new car for every three years or so. At the end of the term, you simply return the car to the dealer.
3.Hire Purchase a hire purchase is similar to PCP but you are obliged to pay for the vehicle in full after the end of the lease term. This is perfect for those who want to drive home their dream car without paying a lot of cash at the beginning of the term.
When it comes to car finance, all you need to remember is to ask around and read everything that is stated on the contract. With an affordable car finance deal you are on your way in experiencing the convenience of driving the newest cars in the market without ever paying a huge load of cash.
by: Benson
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