For best suited, but it is important to

For many of us
these days having a car is not a luxury any longer but a necessity. Some of us
use cars because we having kids and families that need to be ferried around,
and others need a car because of work, either to get to work and back or to use
for work.


Whilst using
public transport is definitely encouraged, particularly given the cost of
running a car these days, for some people it would be totally impractical not
to have a vehicle. However, a vehicle is no good to anyone if it is unreliable
or worse still dangerous, and therefore you may be looking for ways to finance
the purchase of a newer more reliable vehicle such as the Audi Q5 2018.

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Some of the options available


There are a
number of options that you can take when it comes to purchasing a newer
vehicle. Your circumstances, budget, and needs will help
to determine which of these options is best suited, but it is important to look
into all of the choices so that you find the right solution for your needs. One
of the simplest methods of financing the purchase of a newer vehicle is on HP
or Hire Purchase. With this method you make monthly repayments on the vehicle
until you have paid what you owe on it, and then the car becomes yours.


Over recent
years a popular form of financing a vehicle has been PCP or Personal Contract
Purchase. This is a flexible and convenient method that offers a number of
choices. It can also help to keep your monthly repayments down. You make
monthly repayments on your chosen vehicle for a specified period of time. You
can arrange repayments on just a portion of the value of the vehicle, with the
remainder being deferred until the end of the term, which is known as a balloon
payment. This is what helps to keep your repayments down each month.


At the end of
the term you will have several choices. You can return the vehicle to the
dealership and you will owe nothing more on it. Alternatively you can choose to
take out another PCP plan on a newer vehicle and return the old one. Finally,
you can make the deferred balloon payment and the car becomes yours.


There are
other options available to those that wish to purchase a newer vehicle. You can
opt for a bank loan, which means that you
will have more choice over where you get your vehicle from. You will find that
some banks offer specialist car loans with a range of additional benefits such
as reduced insurance costs and free HPI checks. You could go for dealership
finance as well, but you should bear in mind that this can be costly in some
cases, especially if your credit is not very good. It also means that you will
have to get the vehicle from the dealership that is offering the finance.