Car Hire Purchase (HP) is a simple, straightforward and competitive way of obtaining car finance for vehicle purchase for private or business customers.

It is one of the easiest forms of car finance to arrange. It normally involves the minimum of a small deposit on a vehicle, although this is not always necessary and then a commitment to fixed monthly repayments. The payments can be arranged for a period of time between 12 months and 60 months, depending on your requirements and the age of the car or motorcycle.

You can settle an HP agreement at any time during the life of the car or motorcycle loan, and when all is paid, the car is yours to keep or sell on.

Business benefits: Business users can claim tax relief on the interest charged and the car or motorcycle is classified as an asset. As an asset the vehicle can be written down against taxable profit by 25% up to a maximum £3000 per annum. Fixed monthly payments help with budgeting and can aid cash flow. Consult your accountant for further advice on tax and VAT implications of this product and how they may apply to your business.

You'd like reduced monthly payments
Then LEASE PURCHASE or PERSONAL CONTRACT PURCHASE is right for you

Simple and flexible, Personal Contract Purchase & Lease Purchase often have lower payments than HP. In general they’re only available on newer cars and work best for the type of vehicle that holds its value well, or higher priced prestige, luxuary and sports cars.

Lease Purchase (LP) is a form of hire purchase that defers a certain amount of the loan to the end of the agreement as what is commonly called a ‘balloon payment’. This amount is based on a conservative view of the expected value of the vehicle at the time the final payment is due, but does not guarantee that value. The difference, plus the interest is spread over the term of the loan, up to 48 months and repaid as a lower monthly payment.

Lease purchase is available to private individuals and to business customers. You can settle a LP agreement at any time during the life of the loan, and when all is paid, the car is yours to keep or sell on.

Personal Contract Purchase (PCP) is similar to Lease Purchase in that it defers an amount of the loan to the end of the agreement based on the expected value of the vehicle at the point the balloon payment is due. It is also based on your agreed, expected annual mileage. The difference, plus the interest is spread over the term of the loan and repaid as a lower monthly payment.

The unique part of the PCP agreement is that the vehicle is guaranteed by the finance company to be worth at least the value of the balloon payment at the time the balloon payment is due. This means that if the vehicle is worth less than this amount, you can hand it back to the finance company with nothing more to repay (subject to mileage and conditions). You can still choose to pay the balloon payment and keep the car and when all is paid, the car is yours to keep or sell on.

PCP is only available to private individuals. No tax relief or benefits apply.

Contract Purchase (CP) is virtually identical to Personal Contract Purchase, but is specified for business purchases and business use, allowing the figures to be put through the company accounts.

You'd like to own your vehicle from day one
Then PERSONAL MOTOR LOAN is for you

A Personal Car Loan is simply a personal loan specifically for the purchase of a car. Unlike HP, LP and PCP, you own the car from day one. Monthly payments are normally fixed. A personal car loan provides you with a wider choice of cars and potentially competitive finance rates.

Whilst the loan is for the purchase of a vehicle, it is not secured on the vehicle in the same way as HP. A Motor Loan is an unsecured loan and therefore the vehicle is yours from the day of purchase.

Motor Loans can sometimes be provided without need for a deposit and can even be used to help where there is negative equity left owing on a previous vehicle.

Motor Loans are only available to private individuals. No tax relief or benefits apply.