IT’S a new year, but often the same problems have a habit of surfacing. Successfully financing the cost of a vehicle can put anyone in a difficult situation. Whether you need it for your business or for personal use, though, a functioning car is a integral part of our lives. Here are the three most popular options available to you.

Personal Loan

Taking out a personal loan has long been the first approach to financing a vehicle. This can cover the whole cost of the car or just a partial amount, and if you’re patient and shop around you should be able to find a deal with a completive fixed interest rate. You’ll need a good credit rating for lenders to consider loaning you the money, though, and you also need to make sure you can afford to pay the monthly fees. Don’t take out a loan against your home as you put it at risk if you can’t keep up with the regular payments.

Hire Purchase

A hire purchase refers to a deal where you purchase the vehicle on finance, paying in monthly instalments usually over one-to-five years. You’ll typically have to pay an upfront deposit—usually 10% of the vehicle’s value—though these can be negotiated and, in some instance, avoided altogether. This gives you the opportunity to start driving a new car right away but remember you won’t actually own it until the final payment is made.

Personal Leasing

Personal leasing has been popular in the United States for many years now, but it’s only in the last few years that we’ve seen the trend shift over to the UK as well, especially amongst businesses. You pay a lender like Car4Leasing a fixed monthly fee—usually over one-to-three years—for the ability to use the car and at the end of the contract you simply hand it back. This means you don’t have to deal with hassles like depreciation and at the end of the contract you can upgrade to whatever’s the latest model on the showroom floor. However, be aware that the rates often include maintenance and servicing fees so they may be higher than the other options. You may also have to pay for the first three months up front.

A new car is a major purchase so make sure that you evaluate all of your options before you decide on anything. Depending on your situation, a specific approach may suit you much better.