In lay-mans terms, what are the options open to me? I understand you can pay a fixed monthly term and at the end of the deal pay off the rest,hand the car back or take a new deal. Any explanation of the pro's and cons appreciated.
As Longines said, this is PCP which you are describing.
I did PCP for the first time last year and I love it. I know nothing about cars and my wife uses it more than I do for long commutes, our last car was starting to worry me it would break down on her. PCP worked out perfect for us because we get a brand new car with a warranty, so we have very little anxiety about it breaking down etc. I worked out that the amount I would generally pay every three years for a new car and repairs was the same/less than what I am paying with PCP, so for a non-car savvy type I love it.
Plus the whole building up equity thing means hopefully I'll always have new/ish cars, which is a nice thought.
If you know your stuff with cars, IMO you are probably better off getting finance and looking for a good deal. But if you are a 36 year old bloke who still describes them as 'red ones' then I'd recommend it.