I am very uneducated when it comes to personal finance. Four years ago I decided to buy a car. The dealer offered me the car with 0% interest and when I told him that I might pay the installments faster than one installment a month he told me that it's a very bad idea as I am paying 0% interest and I should take my time paying the full amount. I have a very good credit score and I could easily get a personal loan and pay for the car in full.
However after a year it came to my attention that I don't own the car and it's called hire purchase and it's simply like the company owns the car and I am only renting it every month but by the end of the agreement period the company will give me the car as a gift? This way they have control over the car and can retrieve it anytime I stop paying the installments.
My problem here is the case of an accident and the car gets written off! The insurance will pay market value of the car, the gap insurance will pay the difference between the market price and the original price we agreed on. All the money will go to the dealer, my insurance will take the written off car and I end up with nothing!
How is that fair?