Options to Consider When Buying a Car

When buying a car, it can be difficult to know where to start. In the modern-day, there seems to be an endless range of services available through which you can purchase your car, and all of them seem to offer lower prices than the next.

Comparison sites aren’t the only way to go about buying a car either, with any driver looking to pick up their next ride able to access vendors via a huge range of other methods, each with its own positives and its own drawbacks. 

This isn’t where the difficult decision making stops, though – even once you have established from whom you are going to buy the vehicle, you’ll need to decide which type of purchase to make – that is, the structure of the finances involved in the final transaction, involving leases, loans, pay-back-later schemes and other ways to make the spend as convenient for you as possible. 

With so much for a car-buying customer to wrap their head around, it’s more important than ever to ensure you’re fully informed of the various choices that are part of the process of purchasing and transporting your new vehicle. 

Read on to find out more information in preparation for buying a car.

Hire purchase 

The first, and one of the most popular ways for consumers to buy a car, is through a hire purchase mechanism. 

Using this format, those buying a car don’t have to worry about paying out a huge lump-sum fee but can treat their car payment more like a mortgage, where a payment is made each month, contributing toward the overall cost of the vehicle. 

Each of the monthly payments will carry interest relating to the full value of the purchase, and once the full loan has been repaid, the car is yours. 

Ship from overseas

Another option for those looking to purchase a new vehicle is shipping it in from overseas. In the modern-day, car transport services for shipping vehicles across large distances are widespread, and highly effective and efficient at completing what can be a complicated process. 

Providers of international car transportation, such as https://www.shiply.com/car-transporters can make the transportation process a lot more streamlined and take care of much of the documentation; it can be tricky to navigate without previous experience. 

Having access to such services makes accessing cars that aren’t available in your country a lot more realistic.

Personal Contract Purchase (PCP)

Especially in a market where car values depreciate quickly, and in an industry where change and modernization are never far around the corner, it can seem like a lose-lose when purchasing a new car. However, Personal Contract Purchase systems mean that changing car every few years can be a realistic option. 

In this case, and unlike hire purchase, you do not receive a loan to cover the full value of the car – instead, an agreement is reached for a loan to cover the difference between the car’s value on purchase day, versus when the contract ends.

You pay interest on payments towards the loan, and there is a condition at the end of the hire agreement – if you want to keep the car, the remaining value must be paid, and if not, the car is returned with no further payment.