Under a personal contract purchase you are required to pay a deposit of about 10 per cent and make fixed monthly repayments which cover the difference between the amount you’ve borrowed and the amount the firm sets as the ‘balloon payment’ – a large payment that can be made at the end.
Interest rates tend to start from about 4 per cent although some dealers may offer 0 per cent interest. Hire Purchase is similar – it also requires you to put down a deposit of around 10 per cent of the value of the card and to make monthly payments. If you are certain you do not want to buy a car but only hire it, then leasing is your best option as you have to hand back the car when your contract ends.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more: