Direct lending or dealership financing, both types of vehicle financing options in UK have their respective pros and cons. One can also choose vehicles on contract hire, if buying seems a costlier option. A lot of dealers offer Honda contract hire, Lexus contract hire, Maserati contract hire for both personal and business purpose.

Direct Lending Option

Direct lending involves getting direct loans from banks or financial institutions. Such loans are available for purchasing the vehicle. The borrower agrees to repay the loan amount over a time span mutually agreed with the lender. Loan obtained is used to pay the price of the vehicle for purchase. Borrowers can compare and choose from different banks and lending institutions, their rates, the tenor and percentage of finance available.

Dealership Financing

Dealership financing is also a common practice in the industry. For instance; if the buyer is trying for Maserati contract hirethen the contract would be with the dealer directly instead of the bank or other financial agencies. The buyer would buy or lease a vehicle over a time specified and agreed mutually.

The method is convenient because deal and finance are both carried out at the same location. Moreover, transactions can be concluded at odd hours.There are multiple financing options because dealers have contact with multiple financial agencies and banks. Dealers often offer various incentives and promotional gifts for the buyers, making this option a more lucrative one.

Factors for Consideration

Certain factors need consideration before a buyer buys or rents any vehicle. It is important taking note of the Federal and State laws relating to such purchase, lease and financing. Knowing about legal rights and responsibilities would help the buyer or lessee take an informed decision. Similarly, it is necessary determining how much one can afford, the length of the contract, and the package offered. Checking the overall cost of the financing is necessary also.

PCH or PCP

For car leasing it is necessary choosing between Personal Car Hire (PCH) and Personal Car Purchase (PCP). In personal car hire the monthly payments would include non-fuel running costs like taxes and servicing. Yet the monthly payments are usually lower for the PCH than in case of PCP. Also with PCH the user is free to choose a new supplier at the end of the contract. In case of PCP no such options are usually available.

For different vehicle finance options in UK, contact mysvo.co.uk and enjoy driving the best of cars.