Understanding your Obligations with Car Finance

When you take out a car finance package, you need to understand that you do not own the car. At the end of the package, you may own it, depending on the one you select. This is essential to understanding your obligations as a part of the deal.

You should read the terms and conditions very thoroughly when you take out the deal. Talk it over with the dealership as well so that you understand the small print. You should make sure you know what will happen with gap insurance – a type of insurance that covers you if the car is written off and it is worth less than the amount you have paid on it. Gap insurance will ensure you are not left short.

You should also understand what happens with a PCP deal if you decide to hand the car back. What will you be charged for? What counts as acceptable wear and tear?