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Hire Purchase (HP)

HP is the simplest and easiest way to own your new or used car.

It is a hire agreement which gives you an option to purchase your car at the end of the agreement. You are the registered keeper of the car and are responsible for insuring and maintaining it. The finance company is the legal owner of the car until your HP agreement has been paid in full and you have paid the ‘Option to Purchase Fee’, at which time legal ownership transfers to you.

Your fixed monthly payments are determined by the cost of your car, initial deposit paid and contract period.

Lease Purchase (LP)

Lease Purchase is also referred to as ‘hire purchase with a final balloon’ payment, and offers lower monthly payments to conventional Hire Purchase or PCP.

You choose your deposit, contract period (normally between 24 and 48 months), annual mileage you intend to do, which determines the estimated future value of the vehicle, known as the ‘final balloon payment’, that must be paid to own the vehicle.

Unlike PCP there is no guarantee offered at the end of the agreement and the final ‘balloon’ payment must be paid by you. There is also no option to hand the vehicle back at the end of the contract.

Personal Contract Purchase (PCP)

PCP is a popular and easy way for you to own a more expensive or a higher specification, new or used car, than you may normally consider. It is ideal for customers wanting to change their car more often, or if you're a company car driver who wants to ‘opt out’.

You choose your deposit, contract period, annual mileage you intend to do, and combined with a Guaranteed Minimum Future Value, ‘GMFV’ (means you know exactly what your ‘minimum’ future part exchange value will be),provides you with lower fixed monthly payments than other forms of finance, all to suit your budget.

The ultimate in flexibility, PCP lets you keep your options open until the end of the agreement, when you can choose to either:

• Part-exchange your car for a new one.
• Purchase your car by paying the optional final payment (GMFV).
• Hand the car back with nothing more to pay.