This guide answers some of the common questions to help you decide whether a car finance agreement is right for you.
Car finance allows you to spread the cost of your vehicle into manageable monthly instalments over time, rather than paying it all upfront. That means you can often afford a higher-specification car within your monthly budget, without having to save extensively before you buy.
There are two main types. With Hire Purchase (HP), you pay an initial deposit followed by monthly payments, and once all payments are made you become the legal owner of the vehicle. With Personal Contract Purchase (PCP), you also pay a deposit and monthly payments, but the payments are lower because you're paying the depreciation in value rather than the full cost of the car — ownership isn't automatic at the end.
Deposit, then fixed monthly payments. At the end, the car is yours — no final balloon payment.
More on HP →Lower monthly payments, with the flexibility to return, keep or change the car at the end.
More on PCP →Find a car you love and click 'Apply for finance', or give our advisors a call.