Financing a car is more popular than ever, but which option is right for you?

Finance is one of the most popular ways to get behind the wheel of a new or used car - but choosing the right option for you can be a bit of a minefield.

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Whether it's the ability to split payments into more manageable chunks or being free to use larger sums of money elsewhere instead of having them tied up in one car, finance is something that a lot of people consider when getting a new car.

There are, however, different types of car finance available, with each bringing positives and negatives. Here, we're going to take a look at the most popular forms of finance and what each one offers.

PERSONAL CONTRACT PURCHASE (PCP)

Personal Contract Purchase - or PCP - is a popular form of finance offered on many cars. With this agreement, you'll pay an initial deposit followed by regular monthly instalments. During the term of your agreement - usually between three and five years - you'll never own the vehicle outright and those monthly payments will go towards covering the depreciation of the car.