With vehicles being so important for many people in the present day, it is understandable that a lot of people are looking for car finance deals. Vehicles are becoming more expensive in the modern era, which means people have to pay more money for their car. Add this to the fact that fuel is rising, insurance costs are high and there are so many other costs associated with caring for a vehicle and ensuring it is in great condition and motorists have to pay a lot of money to get on the road. This is why car finance is such a big business these days.

The thing is though, in the United Kingdom, there is a growing concern about the cost of car finance and the nature of these deals. There was more than £30 billion borrowed in the UK in 2016 for car finance deals and a growing number of people are taking out a PCP deal. In fact, over 80% of the people who bought a new car in the country last year had this sort of deal. This deal provides flexibility but it doesn’t see a person owning the car, it merely sees the motorist renting the car over a three year period. As you can understand, this is likely to be a more cost effective way of having access to a vehicle.

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Once the three year period is over, a motorist has three choices. They can give the car back, they can roll the deal over into a new deal for a new car or they can pay the remaining balance left on the vehicle and then own the car. Individuals need to think about the option that is best for their own needs but there have been some complaints about these PCP deals and the difficulty in getting out of these contracts.

This is why motorists should fully consider all of the options available to them before they opt for a PCP deal. It may be that some dealers or lenders encourage this style of deal but just because a deal is advised doesn’t necessarily mean that it is the best deal for the motorist. It may be that taking a different type of car finance deal, like a guarantor loan, would be of interest. It is essential that motorists consider all of their options before signing any agreement.

There is no denying that having access to a motor is crucial but car finance needs to be taken seriously.