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  • Car Finance Explained

    Car Finance Explained  

    More and more buyers are choosing finance to fund their dream cars. There are several types of car finance, each with their pros and cons – read on to work out which is right for you.

    All types of finance aim to help you drive your dream car without needing a cash lump sum to pay for it upfront. The most widely recognised and popular option is personal contract purchase (PCP), but other finance methods such as hire purchase (HP) and leasing are steadily gaining popularity. Like any finance package, you should carefully consider whether you can afford the repayments – a cash price will always be available and might suit your circumstances better.

    PCP most of the time requires a deposit, has a mileage cap and has a Balloon payment at the end of the contract.

    HP most of the time requires a deposit, has no mileage caps and no Balloon payment at the end of the contact

    Leasing requires a deposit, has a mileage cap but no Balloon payment at the end of the contract.

    Visit our Finance page for more details on each type of Finance