A secured loan where the car itself serves as collateral. These loans usually come with fixed interest rates and repayment periods, offering lower interest rates due to the secured nature of the loan.

Pros: Potential to improve credit score with timely payments.

Cons: Risk of vehicle repossession if repayments are not made; generally involves longer commitment periods.

Similar to a personal car loan but for businesses, where the business owns the vehicle and the lender takes a mortgage over it until fully paid.

Pros: Immediate ownership and possible tax advantages.

Cons: Requires up-front payment; potentially higher interest rates.

Consumers pay a fixed monthly fee to use the car without owning it, retaining the option to purchase the car at lease end or return it. This arrangement often includes limitations on mileage and vehicle condition.

Pros: Lower monthly payments and the flexibility to upgrade to a new car at the end of the lease.

Cons: No equity in the car; potential extra charges for excessive wear and tear.

A business arrangement where the company makes payments towards the vehicle until the final payment, after which ownership transfers from the financier to the business.

Pros: Spreads out the cost of the vehicle; tax deductions available for interest and depreciation.

Cons: More expensive over the long term; the vehicle is not an asset on books until fully paid off.

This is a tripartite lease agreement involving an employee, employer, and financier where the employer makes lease payments on behalf of the employee, deducted from their pre-tax salary.

Pros: Tax-efficient; potentially lowers taxable income.

Cons: Dependency on continued employment; the employee must take over payments if employment ends.

A finance lease allows a business to use the vehicle while the financier retains ownership. Lease payments are tax-deductible, and the agreement offers flexible end-term options.

Pros: Helps manage cash flow and tax planning for businesses.

Cons: No equity built in the vehicle; obligated to fulfil the lease term.

A rental agreement allowing businesses to use vehicles for shorter periods without the intention to purchase, keeping the leasing costs off the balance sheet.

Pros: No risk of depreciation; offers flexibility for changing business needs.

Cons: No option to own the vehicle; could incur fees for early termination.

A modern take on lending where individuals borrow from others via a peer-to-peer platform, bypassing traditional financial institutions.

Pros: Often lower rates for those with good credit; more personalised lending terms.

Cons: Riskier for both lenders and borrowers; potentially higher rates for those with poor credit.

A loan that allows significantly lower monthly payments throughout its term, with a large final 'balloon' payment due at the end of the term.

Pros: Reduces monthly outgoings, enhancing cash flow.

Cons: The large final payment can be a significant financial burden.

Using a credit card to purchase a vehicle, which may be feasible for cheaper cars or down payments, often to earn rewards.

Pros: Immediate acquisition; potential rewards from credit card use.

Cons: Very high interest rates if not paid off promptly; credit limits may be restrictive.

Using available funds to purchase a vehicle outright, avoiding any interest or financing costs.

Pros: No debt or interest payments; potential for price negotiation.

Cons: Significant amount of cash required upfront; reduces liquidity.