Car Finance Explained

Car Finance Explained
There are multiple ways to fund the purchase of a car, whether it be a brand new car or a second hand car. Cash is the most obvious and simplest but not everyone will have enough saved up to buy a car outright. This is where car finance comes in.
Car dealers will offer you three different types of finance. Personal Contract Purchase or PCP, Personal Contract Hire or PCH and Hire Purchase or HP. Each of these have their own nuances and pros and cons.
You could also use a personal loan, which tends to be the cheaper option when it comes to financing as the APR tends to be lower. And a credit card is also an option, providing you have a game plan for repayments and have a good deal.
Having a car is a need for many of us and often people get sold things they don’t need as they don’t fully understand their options and car dealers exploit this. It will save you money by taking some time before buying a car to do some research and shopping around.
Links:
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Timecodes:
0:00 Intro
0:40 What methods are there to buy a car?
0:56 Using cash to buy a car
2:43 What are the car financing options?
3:09 What is PCP or Personal Contract Purchase?
6:04 What is PCH or Personal Contract Hire?
7:11 What is HP or Hire Purchase?
8:24 Using a personal loan to buy a car.
9:48 Using a credit card to buy a car.
11:15 Tips on buying a car.
12:51 Final thoughts.
13:59 Outro
Sources:
www.motorcityplymouth.co.uk/b...
www.carwow.co.uk/guides/finan...
www.which.co.uk/reviews/new-a...
www.moneysavingexpert.com/loa...
www.moneysavingexpert.com/loa...
www.moneysavingexpert.com/loa...
www.moneysavingexpert.com/loa...
www.moneysavingexpert.com/loa...
DISCLAIMER:
I am not a professional financial advisor and this video is not financial advice. Please do your own research before making any decisions with your money and seek professional financial advice if need be.