Aside from buying a house, the purchase of a car is likely to be one of the largest expenses you make. You need to think carefully about the options open to you. There are usually four:

• Cash: the easiest and most cost-effective way of paying for the vehicle: if you have cash saved you can buy outright and immediately.
• Personal loan: from a bank or building society. This will provide you with a lump sum of money - sometimes as much as £25,000 - which is paid back monthly either at a fixed or variable rate. Disability will not affect your chance of getting a personal loan, but your financial situation might: if the lender feels you will struggle to keep up repayment, they will refuse your application. Loans are useful if you need the money quickly and without a deposit. Click here for more information on loans
• Loan from finance company: these are the kinds of loan arranged by car-dealers themselves. They have become increasingly popular in recent years. They include showroom deals and personal contract purchases (PCPs). These are discussed in full below.
• Motability: the Motability scheme allows disabled people in receipt of certain benefits to use that benefit to hire or buy a car. If you purchase your car using Motability, you take advantage of special terms organised by the organisation with dealers, insurers and manufacturers. Around 4% of new cars are bought through Motability.

Before you start assessing your financial situation, it is important to take some time out to investigate what mobility grants you might be entitled to. In particular, you will want to see if you are eligible for:

• The Disabled Living Allowance (DLA): has a mobility component.



• The War Pensioners Mobility Supplement: makes money available for War Pensioners.
  
  
• Financial help from Motability. Motability is a registered charity and if a disabled person cannot meet the full cost of putting a car on the road, Motability may be able to provide support from its charitable fund. There is a waiting list for this fund.

The most popular means of buying a car is with some kind of credit scheme. This is basically a loan with a fixed rate of interest that allows you to pay back the cost of the car over a set period of time. These credit schemes are offered by a variety of finance companies, from banks, through car dealers to supermarkets. The most frequent options are as follows:

• Personal loan from a bank or building society: a personal loan won't require a deposit and it will pay out straight away, but remember to check the level of the interest rate. One advantage of a personal loan is that you will be able to shop around and possibly even negotiate discounts as a 'cash-buyer'. Additionally you may be able to repay your loan early without penalty. Check the loan terms and conditions with your lender. Click here for more information on borrowing money
• Deals from car showrooms: you organise payment of your vehicle at the showroom where you buy the car. They will be able to tailor an agreement to suit your needs: you'll be able to decide the duration of the loan and how much you wish to pay back each month. You will need to pay a minimum deposit and you won't own the vehicle until the end of the agreement. You will need to pass credit checks made by the lender and if you fall behind on repayment, your car may be repossessed.
• Personal contract purchase (PCP): these schemes, introduced in 1992, offer a flexible form of hire purchase. When you get the vehicle, you pay a deposit and agree to a set number of monthly repayments (usually over the course of 2 or 3 years). At the end of the agreement, you can have a number of choices.
  
  You can: keep the car by paying an agreed (and often low) amount for it; start a new contract: you sell the old car - usually through the dealer - and you keep any cash over what you paid which can be used to finance your next deposit; walk away: hand the car back to the dealer. The car must be in good condition and within the mileage specified in the contract.

The great advantage of PCP schemes is that you never have to drive a vehicle that's more than 3 years old. This will be important if, for whatever reason, you want to make as certain as possible that your vehicle is reliable. Simply buy your first vehicle and when you've paid all your monthly contributions, sell it on through the dealer and use any revenue made to finance the purchase of a new car.

Despite the advantages, PCP schemes can be awkward if you want to make adaptations to the vehicle. Any adaptations made to the vehicle have to be financed by you and each time you get a new car, you will have to return the car in its original condition. This is likely to be awkward if the adaptions required are fairly major. Furthermore, there is often a maximum mileage stipulated in the contract - not ideal if you are planning to travel.

• Motor insurance


• Motability


• Youreable Motoring - comprehensive information on all aspects of motoring.


• Insurance, disability and discrimination

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