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 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.
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 | |
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Requires initial deposit | Optional | Optional |
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Optional |
You own the car outright |
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Car is yours at the end of the agreement |
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Fixed monthly payments |
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Optional baloon (final payment) |
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Excess mileage charges |
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Secured against an asset (eg. car) |
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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
Estimated Monthly Budget
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 |
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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:
- Deposit: £2,000 deposit upfront.
- Monthly Payments: 48 monthly payments of £134.12.
- Optional Final Payment: either pay £4,491.13 to own the car, return the car, or trade it in for a new vehicle.
- Total Cost: including the deposit, monthly payments, and optional final payment, is £12,888.89.
- Mileage: 8,000 miles per year. If you exceed this, you’ll pay 14.9p per extra mile.
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:
- Deposit: You pay £0 upfront, so the full amount of the vehicle is financed.
- Monthly Payments: 48 monthly payments of £272.88.
- Final Payment: you may need to pay a small option-to-purchase fee (e.g., £10.00) to own the car outright.
- Total Cost: including the monthly payments and option-to-purchase fee, is £13,098.24.
- Ownership: including the option-to-purchase fee, are made, the car becomes yours.

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!
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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.
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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.
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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.
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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!
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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
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.
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Hire Purchase | |||||
Personal Contract Hire | Lease Purchase | ||||
Age Min-Max | 21-80yrs old | 21-80yrs old | 18-70yrs old | 18-80yrs old | 18–no max |
Joint Hirer | |||||
Provisional License | |||||
Self-employed | |||||
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 |
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.