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Image: Shutterstock/carballo
Image: Shutterstock/carballo
WHEN THE TEMPERATURE SOARS, sometimes it becomes all too clear that your current car isn’t really up to the beach trips and staycations that it used to be.
And even if you’ve a very clear picture in your head of the type of car you’d buy, figuring out the best way to pay for it can be confusing.
In fact, it’s something that as a nation, we’re not great about. As Director of Communications and Market Insights at the Competition and Consumer Protection Commission (CCPC) Áine Carroll explains:
Consumers spend a lot less time considering finance options than what they’re actually buying – on average about 4.5 times longer on the car they’ll buy than how they’ll choose to pay.
So, do you know your stuff when it comes to paying for a new car?
Take our quiz below to find out.
1. During a Personal Contract Plan (PCP), there are usually 24, 36 or 48 fixed monthly payments, depending on the agreement.
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True
False
2. Choosing a PCP means that you're restricted in the amount of mileage you can do over the course of your PCP. True or false.
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True
False
3. With a PCP, you don't own the car until the final larger payment (known as the Guaranteed Minimum Future Value or GMFV) is made. True or false?
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True
False
4. In our survey of TheJournal.ie's readers, savings (34%) were the most popular way of paying for a new car. True or false?
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True
False
5. You are guaranteed to have equity left at the end of your PCP to use as a deposit if you want to enter into a new PCP. True or false.
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True
False
6. It is possible to end a PCP agreement without paying the balloon payment at the end. True or false?
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True
False
7. If you opt for a PCP, the deposit or trade-in is usually 10-30% of the cash price.
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True
False
8. It is possible in some cases to get a PCP if you're buying a second hand car. True or false?
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True
False
9. A large payment at the end of a contract was the most likely reason to put readers of TheJournal.ie off a particular car finance option. True or false?
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True
False
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You scored out of !
You're a little rusty about car finance.
Sure you might realise how expensive a car can be, but we're not entirely sure that you fully know your HPs from your PCPs. Why not take a look at CCPC's car finance section on their site to get up to speed?
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You scored out of !
You're pretty nifty when it comes to car finance
Not only do you have a fairly good idea of what kind of model you'll buy next, you've done your research around the best way to pay for it. Why not take a look at CCPC's car finance section to learn even more?
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You scored out of !
You're up to speed about car finance.
You've fully assessed your options around buying a new car, and you know your HPs from your PCPs. You even know the pros and cons of each. Why not check out CCPC's car finance section to learn even more?
Do you think you know enough about your rights when it comes to buying a car? If you think it’s tricky business, you’re not alone. Make sure you’re fully up to speed on car finance by visiting the Competition and Consumer Protection Commission’s car finance section before the next time you buy a new car.
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