You’ll also be given the choice of an annual mileage allowance and might find you have to pay an additional amount if you exceed it. If you rack up a lot of miles each year, this may not work for you.
Another way of financing a new car is the personal contract purchase (PCP) agreement. This is a flexible deal with low interest rates and monthly payments, which often gives you the option of buying the car at the end of the rental period. If you do, you’ll be asked to make a bigger final payment at the end, called a ‘balloon’ payment.
PCPs can be a great way to own a new car for the short term. And if money gets tight, you have the security of knowing you can always hand it back. And if you decide not to buy the car, you can part-exchange it for a new one