The Different Forms of Car Ownership Explained
Looking at changing your automobile? This can be a
stressful process, but one of the great things about looking for a new car is
that there are so many different options available to you in terms of ownership.
Here are the main forms of ownership to consider, each with their own benefits.
New
No points for guessing this one, new simply means that
you will be the first owner. This means that there is no history to worry
about, you get the full warranty, no mileage and the satisfaction of having an
automobile that nobody else has owned. Additionally, you are able to choose
your exact specification. The drawbacks of buying brand new are that it can be
very expensive and depreciation will be a factor if/when you look to sell.
Used
The used car market is gigantic in this country, ensuring
that you have a huge selection of used cars to choose from. Although you will
not be the first owner, a second-hand vehicle will be much more affordable and
depreciation is not as extreme. The main drawback is that you could end up with
a faulty car or one with a poor history, but by looking online at guides and
getting vehicle history checks carried out this can be avoided.
Finance
Buying a car is often the second biggest purchase that an
individual makes behind buying a house, so it is understandable that many are
unable to pay upfront. This is why financing has become such a popular option,
where a deposit is made and then monthly payments are made until the value is
covered. With Hire Purchase (HP), the deposit is usually around 10% and then
the car is yours at the end of the agreement. Personal Contract Purchase (PCP),
meanwhile, has lower monthly payments with a balloon payment at the end where
you then own the automobile. Alternatively, you can walk away from the deal or
negotiate one on a new vehicle.
Leasing
More and more motorists are now looking to lease from
companies like Car4Leasing instead of purchasing a
vehicle. This involves making monthly payments and then returning the vehicle
at the end of the agreement, when you can then arrange a new lease. It is a
fantastic way to drive new automobiles every few years, plus you do not have to
worry about depreciation and re-selling the automobile as you do not own it.
The best path to take will depend on your financial
situation and your own personal preference, but the range of options ensures
that most motorists are able to obtain an automobile without too much
difficulty.