Your Car Finance Questions, Answered

Personal contract purchase (PCP) is a popular car finance option where you pay an initial deposit, make monthly payments over a set term, and have three choices at the end: return the car, pay a final balloon payment to own it, or trade it in for a new vehicle. PCP car finance typically has lower monthly payments than hire purchase because you're not paying off the full vehicle value during the term.

Hire purchase (HP) is a straightforward car finance agreement where you pay a deposit and then monthly installments until you've paid off the full vehicle price plus interest. Unlike PCP, there's no large balloon payment at the end, and you automatically own the car once you've made your final payment. HP car finance is ideal if you want guaranteed ownership and prefer predictable payments throughout.

Car finance works by spreading the cost of your vehicle over an agreed period with manageable monthly payments. At motorpointlending, we assess your application, offer competitive rates based on your situation, and provide flexible vehicle finance options including PCP and hire purchase. Once approved, you drive away in your car and make regular payments until the agreement ends or you own the vehicle outright.

Used car finance through motorpoint car finance offers the same flexibility as new car agreements. Both hire purchase and personal contract purchase work excellently for used vehicles, with HP being popular for those wanting ownership and PCP appealing to drivers who like changing cars regularly. We structure our used car finance to ensure competitive rates regardless of whether you choose new or pre-owned.