When the time comes to find a suitable automobile, motorists have a few different options to consider. This is helpful because it means that there is a type to suit every need and it can help motorists to afford their ideal car. Here are the three main different types of car ownership and the main advantages of each:
Buying outright involves paying the full sum for the automobile upfront whether it is a brand new or used car. Although this can be very expensive, it is a good method for those that can afford it as you do not have to make subsequent monthly payments which can turn out to be more expensive than the amount that you paid upfront. Other advantages are that this means that you are the owner of the car and there are no limitations in place.
Leasing is an option which is growing in popularity and well-suited to those that are not concerned with ownership. Leasing involves making fixed monthly payments over an agreed period (usually between two and four years) where you then return the car at the end of the agreement. The main benefits of this are that you do not have to worry about depreciation, you get to drive a brand new car every couple of years and the payments are lower than a personal contract purchase deal. This is especially true when you take out a lease from a specialist like Car4Leasing.
Personal Contract Purchase
A personal contract purchase (PCD) deal is similar to leasing but it provides the motorist with the option to buy the automobile, return it or take out a new deal at the end of the agreement. The amount paid in monthly instalments is not for the full value of the car, but instead the amount that the finance company believes it will lose in value over the term of the agreement. If you decide you want to buy at the end of the deal, you simply make a balloon payment and you are then the owner. The benefits are that it is highly flexible and it can be an affordable way to get in the driving seat of a car that you may struggle to afford otherwise.
These are the three main types of car ownership that are available to motorists. Each has their own distinct benefits and will appeal to certain groups, so there should be a type to suit your needs that will allow you to find a new car and be able to manage the financing without causing too many issues.