Specialist car finance has grown rapidly in the UK in recent years and it is claimed that at least 70% of new car purchases are funded this way. The last time you changed your car you may have used cash or perhaps taken out a personal loan. PCP or HP may not mean much to you but if you walk into a showroom now you need to know what the letters mean. The salesman is bound to bring up the subject. What you really need is a simple guide to modern day car finance options. So we’ve prepared one for you.Guide-150x150

PCP and HP are additional options for funding your next car. You can still buy the car outright with cash or a personal loan. But on the other PCP in particular allows you to defer the decision to own the car and you can simply make a lower monthly payment to use the car over a set period (e.g. 3 years). At the end of this period you can make a one-off balloon payment to take ownership of the car or hand it back. Our guide explains both PCP and HP in more detail so that you can decide what the best option is for you given your personal circumstances.

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