Motor Vehicle Finance Explained There are three main types of finance deals you might want to consider: Hire Purchase (HP) This is a loan secured against the vehicle itself, ideal for those wanting to spread out the cost of their car. Typically, HP deals require a deposit, and the remaining balance is paid in installments, plus interest. Once you’ve paid the final installment, you own the car outright. Personal Contract Purchase (PCP) This option suits those who like to change vehicles every few years without large upfront costs. You’ll usually pay a deposit followed by monthly payments. At the end of the agreed period, you have the choice to pay off the balance, return the vehicle, or use any remaining value toward your next car. Personal Leasing (Contract Hire) Similar to PCP, this option involves monthly payments, but you won’t have the choice to purchase the car at the end of the term. Enquire in store to find out more!
