Vehicle finance that fits your needs.

Hire Purchase is a way to buy a car with fixed monthly payments over an agreed term, usually 1 to 5 years, often after paying a deposit. The lender owns the car until you've made every payment, including any small "option to purchase" fee at the end, and then it's yours. It suits people who want to own their car outright.

The lender buys the car from the dealer, and you repay the price plus interest in equal monthly instalments. Your deposit, including any part-exchange, reduces the amount you borrow. Because you're paying off the car's full value, monthly payments are usually higher than PCP, but there's no large final payment to plan for.

No. HP agreements don't normally have mileage limits or excess mileage charges, because you're paying off the full value of the car and will own it at the end. That makes HP a popular choice for high-mileage drivers and long commutes.

Neither is better for everyone. HP usually has higher monthly payments, but you own the car at the end with no mileage limits. PCP usually has lower monthly payments, with a final balloon payment if you want to keep the car. If you plan to keep your car for years or drive a lot, HP often makes more sense.

Often, yes. HP is one of the most widely available products for customers with a poorer credit history, because the loan is secured against the car. Expect a higher APR than someone with a clean record. Torque checks your options using a soft search, so looking won't affect your credit score.

Personal Contract Purchase (PCP) is car finance where part of the car's value is deferred to the end of the agreement as an optional final "balloon" payment. Your monthly payments cover the difference between the price and that balloon, plus interest, so they're usually lower than HP. At the end, you choose whether to keep the car, return it or swap it.

The balloon, often called the Guaranteed Minimum Future Value (GMFV), is the lender's estimate of what the car will be worth at the end of your agreement. It's agreed at the start, so you know it upfront. If you want to keep the car you pay it; if you don't, you can hand the car back without paying it, subject to mileage and condition.

You have three options: keep it by paying the balloon payment, and the car is yours; hand it back and walk away, subject to mileage and condition; or part-exchange it, and if the car is worth more than the balloon, that equity can go towards a deposit on your next car. We can also help you explore refinancing a balloon payment →.

Your PCP agreement includes an annual mileage allowance. If you return the car over that allowance, you'll pay an excess mileage charge for every extra mile, which is set out in your agreement. If you drive more than expected, you can ask your lender about adjusting your allowance, or choose to keep the car by paying the balloon.

Yes. You can settle early at any time by asking your lender for a settlement figure. Or, once you've paid half the total amount payable (including the balloon), you may have the right to hand the car back under voluntary termination, provided it's in reasonable condition. Talk to your lender first, as the right option depends on your situation.

Conditional Sale is a type of car finance where you pay for the car in fixed monthly instalments over an agreed term. Ownership passes to you automatically once the final payment is made, so there's no option-to-purchase fee and no balloon payment. The lender owns the car until the agreement is complete.

They're very similar: both have fixed monthly payments, no balloon payment, and you own the car at the end. The main difference is how ownership passes. With HP, you usually pay a small "option to purchase" fee at the end. With Conditional Sale, ownership transfers automatically once you've made the final payment.

No. Unlike PCP or Lease Purchase, Conditional Sale has no balloon payment. Your monthly payments cover the full cost of the car plus interest, so once the last instalment is paid, the car is yours.

No. Because you're paying off the full value of the car, Conditional Sale agreements don't normally include mileage limits or excess mileage charges.

Yes. Under the Consumer Credit Act you can settle in full or in part at any time. Ask your lender for a settlement figure. Settling early usually reduces the total interest you pay.

Lease Purchase is a way to buy a car with lower monthly payments by deferring a large part of the cost to a final balloon payment. Unlike PCP, that final payment isn't optional: you must pay it, and the car is then yours. It's often used for higher-value, prestige and performance cars.

You pay a deposit, then fixed monthly payments over the term, and finally a pre-agreed balloon payment. Because the balloon is set by you and the lender rather than by a guaranteed future value, there's often more flexibility in how payments are structured. Lease Purchase agreements don't usually include mileage limits.

Both have lower monthly payments and a final balloon payment. With PCP, the balloon is optional: you can hand the car back instead of paying it, and there are mileage limits. With Lease Purchase, the balloon must be paid, there's normally no option to hand the car back, and there are usually no mileage limits.

It can suit people who want lower monthly payments and are confident they can pay, refinance or sell to cover the final balloon. It's often used on prestige, performance and higher-value cars. Because the balloon is compulsory, it's important to plan how you'll pay it before you sign. Our team will talk you through this.

Yes, many lenders offer Lease Purchase on used cars. It's especially common on prestige and performance models that hold their value well. The vehicle's age, value and mileage will need to meet the lender's criteria.