Drive a hard bargain

FIVE-MINUTE GUIDE TO... VEHICLE FINANCE OPTIONS

- By Harvey Jones

RIGHT TURN?: Motoring options

WHETHER you're looking to buy a new or used car this autumn, unless you can pay outright you need to work out the best finance option for you.

The lucky ones will have cash in the bank, others might consider taking out a personal loan. Otherwise there are three main types of motor finance package to help get you behind the wheel.

They all come with pros and cons, depending on personal factors such as how much you can afford to pay each month and whether you prefer to return the car at the end of the finance period, or take ownership.

Here’s a straightforward guide to each, courtesy of Charlie Harvey, motoring specialist at car sales website Cazoo.

Personal Contract Purchase (PCP). This package is all about flexibility. You pay a deposit followed by fixed monthly payments for usually two to four years.

At the end, you can hand the car back or pay a final balloon payment to buy the vehicle outright.