Important boundary: This is general information, not financial or tax advice. Obtain a regulated illustration where applicable and check current HMRC treatment for your circumstances.
Start with full-term cost
List the initial payment, monthly payments, final payment or purchase option, fees, insurance, maintenance, tyres, charging, excess mileage, damage charges and early-exit cost. Compare the same MG, annual mileage and term in every quote.
Salary sacrifice
You exchange part of contractual salary for an employer-provided car package. Check exactly what happens if employment, hours or leave changes, and how reduced contractual salary might affect pension, life cover and borrowing affordability.
PCP
PCP normally has an initial payment, monthly payments and an optional final payment if you want to own the car. Compare the total amount payable, mileage allowance, condition standard and end-of-term options.
Personal contract hire (lease)
A lease is primarily for use rather than ownership. Check what is included, return-condition standards, per-mile charges, tyre policy and early-exit terms.
Personal loan
A loan can let you own the car from the outset, but you carry resale risk and may owe more than it is worth. Compare the total amount repayable, not only the rate.
Cash
Cash avoids borrowing costs but ties up money and leaves resale risk with you. Compare lost savings interest, maintenance and the value of keeping an emergency fund.
Six questions worth answering in writing
- What is the total cost across the full term?
- Which services and insurance are included?
- What happens if I leave my employer or need to exit early?
- Who carries depreciation and resale risk?
- What are the mileage and condition charges?
- Will the agreement affect pension, benefits or borrowing?
Use identical model, trim, term and mileage for every quote. Keep every illustration and ask for important verbal claims in writing.