There are several options in financing the purchase of a car and you should consider which is the most appropriate in your circumstances, if you choose not to buy it outright.
  • From your bank, building society or finance company.
  • Most car dealerships will have their own finance deals.
  • Other organisations such as the AA and the RAC also provide finance deals, which can be combined with their technical and mechanical checks on the car.
  • From car dealership. It involves making a deposit, followed by a number of monthly payments. The car is legally yours only after all the payments are made.
  • Involves monthly payments, under which you are in effect hiring the car for a fixed period.
  • At the end of the term, you have the option to- return the car with no further payments

    – enter into a new deal for a new (or second hand) car

    – make a final “balloon” payment to buy the car


  • Leasing deals can sometimes include maintenance and breakdown cover in the monthly lease payment.

Further Information

The Drivers and Vehicle Licensing Agency (DVLA) website is the official government site all about licensing a vehicle, drivers licences, and personalised number plates.


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