Compare Car Finance Options
Below you will find key features and benefits of the main products available to you in motor dealerships to help you compare car finance options. This section also outlines the advantages and disadvantages of more traditional funding methods – such as unsecured car loans – to help you find the best product for you.
Hire-Purchase or Conditional Sale
 | quick and easy to arrange |
| low deposits (usually from 10%) |
| flexible terms (usually from 12 to 60 months) |
| competitive fixed interest rates |
 | you do not own car until final payment |
| can be more expensive for short term agreements |
Personal Contract Purchase (PCP)
| lower monthly payments |
| low deposits (usually from 10%) |
| flexible terms (usually from 12 to 36 months) |
| choice of options at end |
| mileage and condition affects costs |
| total amount paid may be more than HP |
| have to settle deferred amount at end if you keep the car |
Personal Car Leasing (Personal contract hire)
| fixed cost motoring |
| no depreciation risk, no part exchange |
| very flexible terms (usually from 12 to 36 months) |
| maintenance payments push up cost |
| you cannot keep the car |
| need to find deposit (usually 3 months rentals) |
Personal Car Loan
| can be arranged over phone or internet |
| can cover the whole value of the vehicle |
| competitive fixed interest rates |
| have to wait for funds to appear |
| may affect other borrowing |
| need good credit rating |
Mortgage Top-up
| low interest rates |
| dealing with an existing lender |
| expensive over the long term |
| secured on your house |
| have to wait for funds to clear |
Credit Card
| short term borrowing |
| useful for paying deposits |
| may be more expensive than other finance |
| will eat into credit limit |
