Car Finance Explained

How you are going finance or pay for your car is a very important part of choosing your car. There are a number of finance options available and it’s well worth taking the time to understand them all before making any decision. We explain how each type of finance works below.

PCP stands for Personal Contract Plan and this type of car finance is available for both new and used cars. PCP finance is popular because it typically involves a flexible 2-3 year car finance package with lower monthly payments.

Hire Purchase is a straightforward way to pay for and own a new or used car. Your monthly payments are largely determined by the period of time you want to finance the car for.

SMEs and larger companies can arrange to finance cars using a Non-Consumer Hire Purchase agreement. This typically offers fixed payment instalments and no tax implications.