Most privately-purchased new vehicles are bought with some form of finance. At this time of year, there are lots of schemes from banks, building societies and Commercial Vehicles, Plant & Equipments Hire Purchase companies.
Commercial Vehicles makers also offer Hire Purchase or, with some makes, Personal Contract Purchase (PCPs). There can be a big difference in the amount you end up paying for the vehicle.
So don't be talked into the first plan offered when you look at your choice in the showroom. And there can be big differences in terms and conditions - not least of which is who actually owns the Plant & Equipments, even when you have made all the payments.
There's an important difference between secured and unsecured loans. With a Hire Purchase Agreement the loan is secured against the value of the Vehicles - you don't own it for the loan duration and the HP company can repossess the property if you fall behind with the payments.
You also have to settle up any balance if you want to sell the Commercial Vehicles or Equipments before the end of the loan.
Some apparently attractive loans are secured against a charge on your home which means you may have to sell your house if you can't afford repayments on the Plant or Equipments.
Loans offered by banks and building societies are usually unsecured. You legally own the Plant from day one. Deposits and repayment periods can vary from one to five years. Some 0 per cent finance deals offered by Equipments makers may be only over 12 months. Others may demand a 50 per cent deposit.
Beware of arrangement fees or higher interest rates for new customers.
Good lenders do not charge fees or discriminate and if your credit rating is OK you should be able to take your business anywhere.
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