Car finance has become big business. A huge number of new and used car buyers in the UK are making their vehicle purchase on finance of some sort. It might be in the form of a bank loan, finance from the dealership, leasing, credit card, the trusty ‘Bank of Mum & Dad’, or myriad other forms of finance, but relatively few people actually buy a car with their own cash anymore.A generation ago, a private car buyer with, say, £8,000 cash to spend would usually have bought a car up to the value of £8,000. Today, that same £8,000 is more likely to be used as a deposit on a car which could be worth many tens of thousands, followed by up to five years of monthly payments.With various manufacturers and dealers claiming that anywhere between 40% and 87% of car purchases are today being made on finance of some sort, it is not surprising that there are lots of people jumping on the car finance bandwagon to profit from buyers’ desires to have the newest, flashiest car available within their monthly cashflow limits.The appeal of financing a car is very straightforward; you can buy a car which costs a lot more than you can afford up-front, but can (hopefully) manage in small monthly chunks of cash over a period of time. The problem with car finance is that many buyers don’t realise that they usually end up paying far more than the face value of the car, and they don’t read the fine print of car finance agreements to understand the implications of what they’re signing up for.For clarification, this author is neither pro- or anti-finance when buying a car. What you must be wary of, however, are the full implications of financing a car – not just when you buy the car, but over the full term of the finance and even afterwards. The industry is heavily regulated in the UK, but a regulator can’t make you read documents carefully or force you to make prudent car finance decisions.Financing through the dealershipFor many people, financing the car through the dealership where you are buying the car is very convenient. There are also often national offers and programs which can make financing the car through the dealer an attractive option.This blog will focus on the two main types of car finance offered by car dealers for private car buyers: the Hire Purchase (HP) and the Personal Contract Purchase (PCP), with a brief mention of a third, the Lease Purchase (LP). Leasing contracts will be discussed in another blog coming soon.What is a Hire Purchase?An HP is quite like a mortgage on your house; you pay a deposit up-front and then pay the rest off over an agreed period (usually 18-60 months). Once you have made your final payment, the car is officially yours. This is the way that car finance has operated for many years, but is now starting to lose favour against the PCP option below.There are several benefits to a Hire Purchase. It is simple to understand (deposit plus a number of fixed monthly payments), and the buyer can choose the deposit and the term (number of payments) to suit their needs. You can choose a term of up to five years (60 months), which is longer than most other finance options. You can usually cancel the agreement at any time if your circumstances change without massive penalties (although the amount owing may be more than your car is worth early on in the agreement term). Usually you will end up paying less in total with an HP than a PCP if you plan to keep the car after the finance is paid off.The main disadvantage of an HP compared to a PCP is higher monthly payments, meaning the value of the car you can usually afford is less.An HP is usually best for buyers who; plan to keep their cars for a long time (ie – longer than the finance term), have a large deposit, or want a simple car finance plan with no sting in the tail at the end of the agreement.What is a Personal Contract Purchase?A PCP is often given other names by manufacturer finance companies (eg – BMW Select, Volkswagen Solutions, Toyota Access, etc.), and is very popular but more complicated than an HP. Most new car finance offers advertised these days are PCPs, and usually a dealer will try and push you towards a PCP over an HP because it is more likely to be better for them.Like the HP above, you pay a deposit and have monthly payments over a term. However, the monthly payments are lower and/or the term is shorter (usually a max. of 48 months), because you are not paying off the whole car. At the end of the term, there is still a large chunk of the finance unpaid. This is usually called a GMFV (Guaranteed Minimum Future Value). The car finance company guarantees that, within certain conditions, the car will be worth at least as much as the remaining finance owed. This gives you three options:1) Give the car back. You won’t get any money back, but you won’t have to pay out the remainder. This means that you have effectively been renting the car for the whole time.2) Pay out the remaining amount owed (the GMFV) and keep the car. Given that this amount could be many thousands of pounds, it is not usually a viable option for most people (which is why they were financing the car in the first place), which usually leads to…3) Part-exchange the car for a new (or newer) one. The dealer will assess your car’s value and take care of the finance payout. If your car is worth more than the GMFV, you can use the difference (equity) as a deposit on your next car.The PCP is best suited for people who want a new or near-new car and fully intend to change it at the end of the agreement (or possibly even sooner). For a private buyer, it usually works out cheaper than a lease or contract hire finance product. You are not tied into going back to the same manufacturer or dealership for your next car, as any dealer can pay out the finance for your car and conclude the agreement on your behalf. It is also good for buyers who want a more expensive car with a lower cashflow than is usually possible with an HP.The disadvantage of a PCP is that it tends to lock you into a cycle of changing your car every few years to avoid a large payout at the end of the agreement (the GMFV). Borrowing money to pay out the GMFV and keep the car usually gives you a monthly payment that is very little cheaper than starting again on a new PCP with a new car, so it nearly always sways the owner into replacing it with another car. For this reason, manufacturers and dealers love PCPs because it keeps you coming back every 3 years rather than keeping your car for 5-10 years!What is a Lease Purchase?An LP is a bit of a hybrid between an HP and a PCP. You have a deposit and low monthly payments like a PCP, with a large final payment at the end of the agreement. However, unlike a PCP, this final payment (often called a balloon) is not guaranteed. This means that if your car is worth less than the amount owing and you want to sell/part-exchange it, you would have to pay out any difference (called negative equity) before even thinking about paying a deposit on your next car.Read the fine printWhat is absolutely essential for anyone buying a car on finance is to read the contract and consider it carefully before signing anything. Plenty of people make the mistake of buying a car on finance and then end up being unable to make their monthly payments. Given that your finance period may last for the next five years, it is critical that you carefully consider what may happen in your life over those next five years. Many heavily-financed sports cars have had to be returned, often with serious financial consequences for the owners, because of unexpected pregnancies!As part of purchasing a car on finance, you should consider and discuss all of the various finance options available and make yourself aware of the pros and cons of different car finance products to ensure you are making informed decisions about your money.

The advances in technology will send humans to Mars in the near future. Internet of things, 5G, artificial intelligence, automated driving, and so on and on, probably no one is able to list all the new technologies that are emerging. The complexity of the technological world is wonderful but just as bewildering, and difficult to grasp. Yet, the researchers, engineers, and technicians just need to focus on their own portion of the work. The complex robots are composed of smaller functional units that are manageable by the respective professionals. They are guided by scientific texts and in the minds. Despite the complexity of technologies, they will finally be traced to the simple origin in scientific texts.

Wikipedia defines technology as “Technology is the sum of techniques, skills, methods, and processes used in the production of goods or services or the accomplishment of objectives, such as scientific investigation.” In the bing.com search, technology is defined as “the application of scientific knowledge for practical purposes, especially in industry.” The definitions are broad, seemingly to include all useful ways of humans achieving something. Indeed, technology is itself a broad term with many valid definitions. Both definitions are correct in that they describe facts. But they don’t explain the meaning of the terms such as “techniques”, “application” and “scientific knowledge”, which are vague terms and could involve all the things in the universe.

Since we defined science in terms of texts in the paper “a new definition of science – the textual foundation that represents the real world”, technology should also be defined in terms of texts due to its scientific nature. Science and technology are closely related and inseparable in the modern world.

1. Scientific texts – the core of technology

We consider texts as the core of science, which should also be in the core of technology due to the essentially same nature of science and technology. Now we are not repeating the textual nature of science/technology, interested readers can refer to our article “language – the core of science”.

Science is able to represent everything, including human behavior. Not only natural phenomena are represented and accumulated, so are human activities. The procedures, methods, details of making achievement are recorded in texts, which are then established as representations. With the textual representations, human activities are organized, classified, and building upon existing known technologies.

Characteristics of technology

Usually, technology is viewed from the angle of its effect on the societies, such as its relations with culture, its practical use, its relation with the economy, politics, etc. These are more of its manifests than its essence. They are of non-textual nature or centered on non-texts. Attributing the characteristics of technology to the various aspects of societies not only complicates the issue, leading to endless interactions but also switch people’s intentions away from technology’s true nature.

Facing the complexity, variations of the ubiquitous and ever-changing technologies, we should think deeply into the characteristics common to all technologies, which texts possess. Represented by texts, technology gets its essential features common to all technologies.

Technical documentation

Methods, skills, materials, procedures, principles, and so forth, all need to be documented for understanding, learning, communication, and recording purposes. User manuals, technical specifications are usually the first stuff needed by customers and engineers, either during product shipment or during product development stages. Technical documents even describe a product more accurately than the product’s actual operations. Despite the complex operations, deviation in operating conditions and by different individuals, abundant materials, changing personnel, documents are relatively stable, simple, accurate, reliable, and explanatory.

Again, it should be emphasized that scientific texts take effect in mind. The technical documents should take effect in mind and don’t equate to the technological texts in mind.

2. Differences between science and technology

It is needed to find the differences between science and technology. Although they have the essential cores, their appearances and emphases are different to account for various aspects of the human world.

Science and technology have similar branches and knowledge. The main difference between science and technology is their goal and objective. Science’s purpose is to observe and explain, while technology aims at taking action and making changes. Their direction is opposite to each other. Science is more of observation, while technology emphasizes action. The same texts can be considered as science or technology depending on the objective and usage. For example, the law of motion is itself a science, but it becomes technology when being utilized to make and operate machinery.

Technology is tightly associated with the man-made world. Human activities have changed the world’s appearance and the way people live. These are the direct result of technologies, although it can also say the people applied science to achieve all these. By intuition, science is a deeper and basic level of knowledge, while technology is more associated with direct applications. Science tends to be fundamental while technology tends to be detailed. But texts play an equally central role in their formations.

Nowadays, information spreads instantly; products are transported speedily. People increasingly lived in environments surrounded by machine-manufactured products and constructions. It became easier for people to achieve their goals by employing existing knowledge and tools. On the other hand, many curiosities can be answered by entering questions into search engines, in seconds. It seems everyone possesses enough knowledge. All one needs is to take action. As a result, more people became action-oriented, the term “technology” is becoming more popular than the term “science”.

3. The text-based definition of technology

Regarding the essential nature of and differences between science and technology, now we provide a new definition of technology as:

The scientific texts that guide human activity.

This definition contains two points:

First, technology is scientific texts.

Second, these texts are employed as guidance.

Our definition doesn’t attempt to invalidate current definitions. Instead, we view from a different angle, focusing on a deeper level, situating on the text-centered model of the world.

Usability of technology

Usually, human activities are purpose-oriented. Hence, technology usually has practical applications. But the extent of application varies depending on specific technologies. Also, a technology useful on one occasion or for some people might not be useful on another occasion or for other people. The activities might be beneficial or bad for society.

Possible extension of the definition

Animals and machines might employ technology in the future and probably currently, such as AI. In those cases, scientific texts exert their effect not directly via human activities, but via animals or machines. Their use of technology is imitations of human intelligence, without essential differences. The definition could be expanded to all human and non-human activities that are guided by scientific texts.

Unifying the non-textual technology with textual technology

People might argue illiterate societies and even animals possess some form of technology, although not so advanced as the modern form. Without going into deep confusion with endless, some are ambiguous, examples, we focus on principles. Sequentiality, clarity, and representation of reality are the three defining features of science. Modern, true-sense technology also possesses these features. In essence, the technologies in illiterate societies also came from the sequential minds with scientific properties in primitive form, which manipulate non-texts instead of texts, in a less efficient/effective manner. Scientific texts truly demonstrate those properties, facilitate visual processing, and make progress in the capability of human minds.

4. A text-centered model of science and technology

We can now propose a text-centered model of science and technology that starts from investigative observations, which derive scientific/technological texts, which in turn lead to actions through proper application. That is to say, science and technology are both integrated into the texts. If the purpose is in the non-text to text direction, focusing on deriving theories, these texts are more about science. If the purpose is in the text to non-text direction, focusing on taking action, these texts are more about technology. The actions change the environment, which becomes a new subject of observation, leading to the derivation of new scientific/technological texts. In this way, scientific and technological activities form endless iterations, surrounding texts in the center.

5. Conclusion

By this new definition, the nature of technology is made known. The relation between science and technology is defined and integrated into the texts. The complexity of understanding technology is reduced. A new basis is provided for future discussion of our technological world.