
Car Finance
Hire Purchase
(HP)
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The most popular type of car finance and easy to understand.
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Borrow an amount of money secured against the vehicle, plus any interest, over a set period of time.
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The car is yours at the end of the term.
Personal contract purchase
(PCP)
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Pay off the car’s depreciation value, instead of making payments towards the full price of the car.
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For example, if the car you buy costs £15,000 and it’s expected to be worth £10,000 when your term ends, then your payments will be based on the depreciation of £5,000.
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You can buy the car outright at the end with a balloon payment, Hand it back or exchange it for newer car.
Personal Loan
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The only finance type that isn’t secured against the vehicle itself.
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Loan an amount of money from a provider and use that to pay for the car. You will pay that money back through regular monthly installments plus any interest.
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You will own the car from day one.