Car finance, explained

New to car finance, or just want a better deal than the dealer offered? Here's how PCP and Hire Purchase work — and how we compare a whole panel of UK lenders to get you a lower rate.

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Over 90% of our customers save money vs dealer finance

Your two main options

PCP vs Hire Purchase

Both spread the cost of your car into manageable monthly payments. The difference is what happens at the end of the agreement.

Lower monthly payments

PCP

Personal Contract Purchase. You pay a deposit and lower monthly payments, with a larger optional "balloon" payment at the end if you want to keep the car.

Lower monthly payments than HP
Three choices at the end: pay the balloon & keep it, part-exchange, or hand it back
Ideal if you like to change car every few years

Best for: drivers who want lower payments and flexibility to upgrade.

Own it outright

Hire Purchase

HP. You pay a deposit then fixed monthly payments over the term. Once the final payment is made, the car is yours — no balloon payment to worry about.

You own the car at the end of the term
No large final payment or mileage limits
Simple, predictable fixed payments

Best for: drivers who want to own the car and keep it long term.

Why finance?

Why so many drivers finance instead of buying outright

Financing isn't just about affordability — there are smart reasons to spread the cost even if you could pay cash.

Affordability

Spreading the cost into manageable monthly payments makes a newer car easier to fit into your budget.

Avoid depreciation

Cars lose value fast — financing means you're not tying up large sums in a depreciating asset.

Cash-flow flexibility

Financing preserves your savings as a safety net for emergencies or other opportunities.

Frequent upgrades

Options like PCP let you switch to a newer model every few years without the burden of outright ownership.

Inflation benefits

With a fixed-rate agreement, the real value of what you owe falls over time as prices rise.

Build your credit

Making payments on time can help build your credit profile over time, which can help with future borrowing.

Good to know

Car finance FAQs

How does car finance work?+

We partner with a wide range of lenders, giving us the ability to compare finance options tailored to you. Complete our quick application to speak with one of our finance experts, who'll help you explore the best option for your next car — whether that's PCP or Hire Purchase. We handle the application, and once approved we work directly with the dealership to make collecting your car smooth and easy.

How much should I put down as a deposit?+

Larger deposits reduce the amount you borrow, lowering your monthly payments and the total interest paid. Smaller deposits keep more cash in your pocket for other uses. We'll talk you through what makes sense for your situation.

Can I refinance my current car?+

Absolutely. If you took out finance at a higher rate, it may be the right time to refinance. We can help you find more attractive terms and lower monthly payments through our network of lenders.

Can I settle my finance agreement early?+

Yes — you can settle early by clearing your settlement figure. Many customers do this around the 2–3 year mark on a standard 48-month PCP term.

How will applying affect my credit?+

When you apply, our lending partners carry out a credit search, which leaves a record on your credit report. A few searches won't significantly affect your score, though frequent applications can. Managing a loan responsibly and paying on time can actually improve your credit profile over time.

See if we can beat your quote

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