WHAT YOU NEED TO KNOW WHEN YOU'RE CAR-SHOPPING

Purchase options

* Personal Contract Purchase (PCP): This option involves paying a deposit, followed by lower monthly payments. At the end of the contract, you can return the car, keep it by paying a final 'balloon' payment, or trade it in. It's popular due to its flexibility and lower monthly costs, but it can be more expensive in the long run.

* Hire purchase (HP): Similar to PCP, but intending to own the car at the end of the agreement. You pay a deposit, and monthly payments are typically higher than PCP, but once all payments are made, the car is yours. This option is straightforward but can be more costly per month.

* Leasing: This is renting the car for a set period. You make monthly payments and return the vehicle at the end of the lease. This option typically includes maintenance and servicing, but owning the car isn't an option.

* Cash purchase: The simplest method is paying the total amount upfront. There are no interest charges or contractual obligations, but a significant cash outlay is required.



Factors influencing car value

* Depreciation: The most significant factor in car value. New cars lose v...