What is Personal Contract Purchase? (PCP)
Personal Contract Purchase is becoming an ever more popular way to finance your new vehicle as generally they enable you to purchase a newer, more expensive vehicle with a lower monthly payment than other loans.
Based on the age and mileage of the vehicle you’d like to purchase, and an agreed term and annual mileage, the finance company will calculate a guaranteed future value - this figure will be the final payment of your agreement.
What is Hire Purchase? (HP)
Over the years, Hire Purchase has been the most common type of car loan - you choose the amount of deposit you’d like to pay or even use your part exchange and the balance is equally spread over an agreed period between 12 and 60 months.
Subject to availability and status, HP can be available with zero deposit. With HP there are no mileage limits and at the end of the agreement, you own the vehicle after the last monthly payment.