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In 2017 88 per cent of new car sales were funded using financing agreements. Most of them are not 'bought', however. The majority are actually just borrowing their cars and never own them outright, using deals called personal contract plans - PCPs. These are loans that help reduce the upfront cost of a pricey new car. The amount you borrow is based not on the full price of the car, but on the value of the car once the end of your loan deal is reached, usually after about three years, when the car has depreciated in price.