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When planning a car purchase, the options can seem a little daunting, so we’ve put together some helpful videos and guides to make things more straightforward. Simply click the links to see the features of each product explained, as well as some issues to be aware of before entering into an agreement.
Common financing options are:
Hire Purchase (HP) and Conditional Sale are car finance agreements where you pay monthly until you own the car, with no large payment at the end. After the agreement ends and all payments are made, the car is yours. These options suit people who want to keep their vehicle at the end of the contract and offer flexibility in deposit and payment terms. Read more…
Personal Contract Purchase (PCP) is a flexible car finance option with lower monthly payments and a large optional final payment if you want to own the car at the end. At the end of the agreement, you can return the car, pay the final "balloon" payment to keep it, or part exchange it for another vehicle, making it a popular choice for people who like to change cars regularly. Read more…
Business Contract Purchase (BCP) is a business car finance option that offers fixed monthly payments and flexibility at the end of the agreement. Businesses can choose to return the vehicle, pay a final "balloon" payment to own it, or part exchange it for a new model, making BCP suitable for companies that want choice at the end of their contract and predictable costs. Read more…
Contract Hire is a car leasing agreement where you make fixed monthly payments to use a vehicle for an agreed period, then return it at the end without the option of ownership. It's ideal for people or businesses who want a new car every few years without the risks or hassle of owning, and it often includes options for maintenance as part of the package. Read more…
Lease Purchase is a car finance option where you make fixed monthly payments followed by a final lump sum to own the vehicle at the end of the agreement. It suits those who want ownership from the outset but prefer to spread the cost over time, and there is no option to return the car at the end of the contract. Read more…
Finance Lease is a flexible car finance solution mainly for businesses, where you pay fixed monthly rentals for the use of a vehicle. At the end of the contract, you can sell the vehicle on behalf of the finance company and keep most of the proceeds, or extend the lease, but you do not automatically own the vehicle. Read more…
A Personal Loan allows you to borrow money from a bank or lender to buy a car, making fixed monthly repayments over an agreed term. You own the car from the start, and there are no mileage limits or restrictions, giving you full control and flexibility. Read more...
A mortgage top-up allows you to borrow additional money against your home to purchase a car, usually resulting in lower interest rates and longer repayment periods compared to other finance options. However, your home is at risk if you cannot keep up with repayments, so it's important to consider carefully before choosing this method. Read more…
Using a credit card to buy a car offers flexibility and convenience, allowing you to spread the cost or take advantage of promotional rates. However, it may come with higher interest rates and limits on how much you can borrow, so it's important to ensure you can afford repayments and use this option wisely. Read more…
Still unclear? Why not visit our ‘Your finance options’ tool?