Car Finance
Flexible HP & PCP Options

Get flexible car finance with ChooseMyCar. Compare HP and PCP plans, see example payments, and find the right deal to suit your budget — all with quick decisions and trusted lenders.

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Find and Finance Your New Car Today

Find the right finance option for your next car with a simple, straightforward process. With thousands of vehicles available, you can compare Hire Purchase (HP) and Personal Contract Purchase (PCP) side by side, explore features, and choose the plan that works best for you.

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Car Finance Types – Features and Differences

It’s easier to choose the right finance when you can compare all the key details in one place. The table below shows HP, PCP, Conditional Sale and Personal Loans side by side, highlighting how each option handles deposits, monthly payments and ownership at the end of your agreement.

Hire Purchase Personal Contract Purchase Personal Loan Conditional Sale
Requires initial deposit Optional Optional No Optional
You own the car outright No No Yes No
Car is yours at the end of the agreement Yes No Yes Yes
Fixed monthly payments Yes Yes Yes Yes
Optional baloon (final payment) No Yes No No
Excess mileage charges No Yes No No
Secured against an asset (eg. car) Yes Yes No Yes

Car Finance Options Explained

The finance option you choose can have a big impact on the overall affordability of your next car and how your payments are structured over time. Below, you’ll find quick video clips and side-by-side comparisons that clearly explain the key types of car finance and how each car finance product works, helping you decide which is the best fit for your budget and needs.

What Is PCP?

What Is HP?

What Is Conditional Sale?

Personal Loan or Car Finance?

Check Your Monthly Payments for PCP and HP

Compare PCP and HP monthly payments in seconds with our easy-to-use tool. You can experiment with different loan amounts and terms to see the impact on your monthly budget and total cost of credit, so you can make the right choice for your finances.

Compare PCP and HP monthly payments

£10,000.00

48 months

Estimated Monthly Budget

£290

Total Cost of Credit

£22,258

Optional Final Payment

£0

Compare HP vs PCP Car Finance

PCP and HP are two of the most popular ways to finance a car, each offering different benefits depending on your budget and plans. Our comparison table lets you explore hire purchase vs personal contract purchase using an example vehicle price, showing the deposit required, any balloon payment, mileage limits, and much more. Use the tabs to switch between HP and PCP and see which option could suit you best.

Finance
Comparison
PCP
Personal Contract Purchase
HP
Hire Purchase
Learn the details Get Quote Get Quote
Pricing
Vehicle Price £9,998 £9,998
Deposit £2000 £0
Amount Borrowed £7,998 £9,998
Terms
Duration of Agreement 49 months 48 months
Annual Mileage Limit 8,000 miles
Total Amount Payable £12,888.89 £13,098.24
Total Interest £2,900.89 £3,100.24
Optional Balloon Payment £4,491.13
Monthly Payment £134.12 £272.88
Personal Contract Purchase (PCP)
  • Vehicle Price: £9,998
  • Deposit: £2,000
  • Amount Borrowed: £7,998
  • Example APR: 11.9%
  • Duration of Agreement: 49 months
  • Monthly Payments: £134.12
  • Optional Final Balloon Payment: £4,491.13
  • Total Amount Payable: £12,888.89
  • Annual Mileage Limit: 8,000 miles
  • Excess Mileage Charge: 14.9p per mile
How it Works:
  1. Deposit: £2,000 deposit upfront.
  2. Monthly Payments: 48 monthly payments of £134.12.
  3. Optional Final Payment: either pay £4,491.13 to own the car, return the car, or trade it in for a new vehicle.
  4. Total Cost: including the deposit, monthly payments, and optional final payment, is £12,888.89.
  5. Mileage: 8,000 miles per year. If you exceed this, you’ll pay 14.9p per extra mile.
Read more on PCP
Hire Purchase Example
  • Vehicle Price: £9,998
  • Deposit: £0
  • Amount Borrowed (Amount of Credit): £9,998
  • Example APR: 14.9%
  • Duration of Agreement: 48 months
  • Monthly Payments: £272.88
  • Total Amount Payable: £13,098.24
  • Total Interest: £3,100.24
How it Works:
  1. Deposit: You pay £0 upfront, so the full amount of the vehicle is financed.
  2. Monthly Payments: 48 monthly payments of £272.88.
  3. Final Payment: you may need to pay a small option-to-purchase fee (e.g., £10.00) to own the car outright.
  4. Total Cost: including the monthly payments and option-to-purchase fee, is £13,098.24.
  5. Ownership: including the option-to-purchase fee, are made, the car becomes yours.
Read more on HP

SAF Approved Car Finance Specialists

We stand out not only as a respected car purchasing service in the UK but also as your dependable partner in obtaining car finance. With full authorisation from the Financial Conduct Authority and SAF endorsement, our skilled team is dedicated to assisting individuals by providing customised financial solutions. We assess offerings from more than 17 distinct car finance institutions, guaranteeing that you have the insights needed to secure competitive rates and drive with assurance.

How Car Finance Works with ChooseMyCar

With Choose My Car, understanding how car finance works is easier than ever. Our process is designed to be clear, simple, and supportive, helping you explore your options, understand the costs, and make decisions that fit your needs. It’s all about giving you confidence and peace of mind as you take the next step toward your new car!

  • Step 1: Explore Your Financing Choices

    Start with a quick, no-obligation check to see what finance deals you could qualify for, even if you have bad credit. This helps you understand your borrowing power before you commit.

  • Step 2: Get Your Personalised Quote

    Receive tailored quotes from a wide panel of trusted lenders. We match you with competitive offers that fit your budget and credit profile, making finance simple and transparent.

  • Step 3: Browse and Choose Your Car

    With your finance options clear, browse a wide selection of vehicles- from affordable used SUVs to stylish hatchbacks– knowing exactly what you can afford.

  • Step 4: Apply and Drive Away

    Submit your application easily online. Once approved, arrange for speedy delivery, and hit the road in your new car with confidence and peace of mind.

Finance Your Next Car Today!

Discover your next car and get the finance sorted today- it’s quick, easy, and all in one place!

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  • Zero Deposit
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Nick Zapolski
Nick Zapolski Founder & CEO
Navigating car finance doesn’t have to be daunting. Our mission is to make applying easy and to connect you with a variety of dependable used cars. Dive into the information and tools on this page to find the best fit for your needs.

Estimate Your Car Finance Payment With APR

Our APR Matrix makes it easy to explore your car finance options in a clear and simple way. Just choose a loan amount and slide across different APR rates to see how your monthly car finance cost could change. It’s a handy way to get a sense of what to expect and see which combination of loan and rate could work best for your budget.

*Borrowing a total of £17,500.00 at an APR of 9.90% will cost £370.96 / month

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Compare Our Trusted Car Finance Lenders

See how some of the best car finance lenders in the UK compare. This overview highlights HP and PCP availability, zero deposit options, and other key features from trusted car loan companies, making it easy to understand what each can provide.

JBR V12 Close Brothers Tandem MotoNovo
Hire Purchase Yes Yes Yes Yes Yes
Personal Contract Hire Lease Purchase Yes Yes No Yes
Age Min-Max 21-80yrs old 21-80yrs old 18-70yrs old 18-80yrs old 18–no max
Joint Hirer No No Yes No No
Provisional License
Self-employed Yes Yes Yes Yes Yes
Gross Min Salary Affordability £1000 pm £1000 pm Affordability Affordability
Loan Value Min-Max £25,000 - £750,000 £3,000 - £55,000 £1,000 - £200,000 £2,500 - £125,000 £3000 - £75,000
Max Age of Vehicle at end of term No Limited 15yr HP - 9Yrs PCP 15yrs 15yrs 15yrs
Zero Deposits No Yes Yes Yes Yes

Latest Car Finance Guides and Advice

For reliable car finance advice, check out our comprehensive articles and guides now! Click to explore expert insights and practical tips designed to help you navigate every aspect of car finance with confidence.

Frequently Asked Questions

There’s no single credit score you must have to get car finance. At ChooseMyCar, we work with a wide panel of lenders- some specialise in helping people with excellent credit, while others support applicants with lower scores or limited credit history. So, even if your score isn’t perfect, we may still be able to help.

That said, the higher your credit score, the more likely you are to be offered better interest rates. If you’re not sure where you stand or want to boost your chances, check out our guide to improving your credit score and budgeting for car finance.

You can also get impartial tips from trusted sources like MoneyHelper.

To be eligible for car finance in the UK, you’ll need to be at least 18 years old, a UK resident, and have a regular source of income. You’ll also need to be able to provide proof of your identity and address.

At ChooseMyCar, we’ve made it easy to find out if you’re eligible- and the best part is, checking won’t affect your credit score. Whether you’re working full time, part time, self-employed, or receiving benefits, our broad panel of lenders means we can help match you with a finance deal that suits your circumstances.

There’s no one-size-fits-all answer:the best car finance company is the one that offers you a great deal based on your credit, budget, and car preferences.

That’s why we’ve partnered with some of the UK’s most trusted car finance lenders. Instead of shopping around on your own, we compare rates and terms from multiple providers, making it easier to find the right match in one place.

You can even use our car finance calculator to estimate your payments before applying.

Yes- with ChooseMyCar, car finance is available wherever you are in the UK.

Our nationwide network of approved dealerships means you can apply online, get approved quickly, and pick up your vehicle close to home. From London to Glasgow, we help customers across the country finance and drive away in their next car without the hassle.

The best cars available on finance really depend on your lifestyle, preferences, and budget. At ChooseMyCar, we offer a huge range of reliable makes and stylish body styles to suit all kinds of drivers, from compact city cars to spacious SUVs and reliable family hatchbacks. Whether you’re after something practical for commuting or a more versatile option for everyday use, there’s plenty to choose from.

We work with trusted dealers across the UK to bring you quality used cars on flexible finance plans. You can browse our latest vehicles by make, model, or body style, making it easy to find the right fit for you.

The amount you can borrow to finance a car will depend on several personal factors, including your income, credit history, employment status, and existing financial commitments. Lenders look at your overall affordability to determine how much you can realistically repay each month. In most cases, car finance loans start from around £1,500 and can go up to £50,000 or more, depending on your circumstances.

At ChooseMyCar, we make the process really straightforward. Our quick, soft-search application helps you find out what you’re eligible for without affecting your credit score. Once you’re approved, we’ll match you with finance options that suit your budget, ensuring your monthly repayments are comfortable and manageable!

A car finance estimate is designed to give you an idea of how a finance agreement could look based on the details you’ve entered, such as your deposit amount, chosen loan term, and estimated interest rate.

It provides a rough guide to what your monthly payments and total interest might be. However, it isn’t tailored to your full personal circumstancesL things like your total income, employment status, or full credit history aren’t factored in. Because of that, the actual details of your finance quote may differ once a lender has reviewed your full application.

A car finance quote is a personalised offer based on your individual circumstances. It takes into account your credit history, income, affordability, and the specific vehicle you’re looking to finance. Unlike an estimate, a quote is provided by a lender and includes accurate repayment figures, interest rates, and any applicable fees.

At ChooseMyCar, once you complete our quick online form, we’ll match you with real pre-approval offers from our trusted panel of UK lenders. It’s a simple, no-obligation way to see what you could be approved for- and there’s no impact on your credit score for checking!

As soon as you’re approved and have chosen your car, the final steps are signing the paperwork and arranging to receive your car (we even offer FREE UK Delivery!). Because we work with a wide network of trusted lenders and dealerships across the country, the process is designed to be smooth, efficient, and hassle-free. You can check your eligibility in less than a minute- with no impact on your credit score.

To apply for car finance, you’ll need to provide a few key documents that prove your identity, current address, and income. Lenders typically ask for a valid photo ID, such as a driving licence, along with proof of address like a recent utility bill or bank statement, and evidence of your earnings, usually in the form of payslips or recent bank statements.

These documents help the lender confirm your details and assess your ability to afford repayments. If you’re not sure what you’ll need, don’t worry, our friendly team will guide you through the process after you apply. You can also read our handy document guide here.

A good down payment really depends on your individual circumstances and what works best for your budget. While some people prefer to put down a larger deposit to reduce their monthly repayments, many lenders now offer low or no deposit car finance options, especially if you have a strong credit history.

There are benefits to both approaches: a higher deposit can lower your overall cost, but keeping upfront payments low means you can manage your finances more flexibly. Either way, it’s really important to find a finance deal that suits your needs and makes your repayments comfortable.

For many people, financing a car is a practical way to get behind the wheel without the need for a large upfront payment. It makes owning a vehicle more affordable by spreading the cost into manageable monthly payments, which can help you budget more effectively. Car finance also gives you the chance to drive a newer, more reliable car than you might otherwise afford by saving up.

With the right finance deal, you can enjoy flexible terms and competitive rates that suit your individual circumstances. If you’re new to the world of car finance, we recommend exploring our detailed guides which can be very helpful in ensuring you’re making an informed decision.

Getting the best car finance deal starts with finding the right lender and terms for you- and that’s exactly what ChooseMyCar is here for! We help you check your credit score with a soft-search pre-approval, so you can explore your options without affecting your credit.

We compare deals from a wide panel of trusted lenders and guide you through different finance types like Hire Purchase (HP) and Personal Contract Purchase (PCP) to find what suits your budget and needs. If you can put down a deposit, that can often help reduce your monthly payments but if not, there are other options available.

Our team is on hand to make the process simple and stress-free, matching you with the best possible offers without you having to do all the legwork.

Absolutely! At ChooseMyCar, you can apply for car finance online 24/7. Whether it’s first thing in the morning or late at night, our simple online application is always open. Once you’ve applied, a member of our team will review your details and get back to you as soon as possible. We’re here to make the process smooth and stress-free, no matter when you choose to get started.

The best car finance companies are those that offer competitive rates, flexible terms, and have a reputation for trust and reliability. At ChooseMyCar, we work with a wide panel of trusted and established lenders across the UK. This means we can search a broad range of finance options to find a deal that suits your individual needs and circumstances. Whether you’ve got excellent credit or have had some bumps along the way, our partnerships with leading car finance providers help give you the best possible chance of approval – and at a rate that works for you.

No, car finance can never be truly guaranteed, and any broker or lender making such claims should be approached with caution. All finance applications must go through proper checks, including affordability and credit assessments, as required by UK regulations.

That said, at ChooseMyCar, we work with a wide panel of trusted lenders who consider applications from people with all kinds of circumstances: including poor credit, no credit history, or previous financial issues. While we can’t promise guaranteed approval, we’re here to give you the best possible chance of finding a finance option that works for you.