1.

Is finance right for me?

That depends on the following:

• Do you have enough money to put down for a deposit?
• Are you re-mortgaging your house to buy this vehicle?
• Are you in stable employment for the period of your loan/finance?
• Are your earnings enough to cover the repayment and do you really need financial help?
• How high can you go each month?
• Do you have access to savings or investments?
• Do you have a contingency (back up) plan in case of ill health or other circumstances?

2.

What Finance options are available?

There are a few vehicle finance options available:

• Contract Hire. Long term hire agreement where a vehicle is hired over an agreed period an always remains the property of the hire company. Only applies to new/nearly new vehicles and may be suitable for self employed (tax benefits).
• Contract Purchase. You pay an initial 10-50% deposit and monthly instalment over an agreed period. At the end of the period you can buy the car outright for a small fee, give it back or the finance as deposit for another hire deal.
• Hire Purchase (HP). This is a credit agreement between you and the finance company. The vehicle initially belongs to the finance company, is hired over an agreed period and on final small payment belongs to you.
• Leasing. Here you have a contract with the lease company that you do not own the vehicle but get to use it over an agreed period and must return it at the end. There may be an end of lease payment for things like excess mileage, additional wear and tear etc.
• Loans. You borrow an amount of money from a finance company, bank or other lender to buy your vehicle outright. You then repay that amount over an agreed period with interest after which belongs to you.