CREDIT CARDS

Positives:

- Credit card companies often offer interest-free periods of 6–9 months

- You can get buying insurance free with some cards

Negatives:

- Credit card interest is extremely high

- The credit limit may not be enough for the purchase of the car you want

LOANS

Positives:

- The interest and repayments will be sensible (much less than credit cards, slightly more than a lease)

- When the loan is paid, you own the car

Negatives:

- Loan repayments are not based on the value of the car. So at some point during the life of a loan, the car may be worth less than the amount still owed to a bank

LEASES

Positives:

- Monthly repayments will be cheaper than a loan

- The lease is based on the likely depreciation of the car, so you do not owe more than it is worth

Negatives:

- You do not own the car, but give it back at the end of the lease (unless you buy it at the value of the day or as agreed with the lease company)

- You will need to buy the car through the leasing company – so cannot buy from classified ads or private dealers. This can make the car more expensive