For UK drivers · England · Scotland · Wales · NI
Car finance, explained in plain English.
PCP, Hire Purchase, leasing — what they really cost, your rights if things go wrong, and who the UK's car finance lenders actually are. No jargon, no sales patter.
PCP vs HP vs leasing vs loan — in 30 seconds
| Question | PCP | HP | Lease (PCH) | Bank loan |
|---|---|---|---|---|
| Do I own the car? | Only if you pay the balloon | Yes, after final payment | Never — you hand it back | Yes, immediately |
| Monthly cost | Lowest (balloon deferred) | Higher | Low, but no equity | Mid — depends on APR |
| Mileage limits? | Yes + excess charges | No | Yes + charges | No |
| Can I end early (VT)? | Yes — halves rule | Yes — halves rule | No statutory VT right | Settle anytime |
| Best for… | New cars every 2–4 yrs | Keeping the car long-term | Hassle-free new car, servicing incl. | Private sales, full flexibility |
PCP vs HP payment calculator
InteractiveEstimate monthlies for the same car funded two ways. Flat-rate illustration — real quotes use risk-based APRs.
PCP monthly
+ balloon at the end (or hand back / part-ex)
HP monthly (same APR/term)
You own the car outright at the end
PCP total if you keep the car
Deposit + all monthlies + balloon
Illustration only. Excludes fees, excess-mileage charges (£0.06–£0.30+/mile), damage charges and interest-on-balloon differences between lenders.
Meet the UK's car finance lenders
Full directory →Most drivers never choose their lender — the dealer does. Here's who they are, what they offer, and how to reach them.
Struggling to pay? Know VT
After you've repaid 50% of the total amount payable, you can hand the car back and walk away under s.99 of the Consumer Credit Act. Lenders rarely advertise it.
How voluntary termination works →Paid commission on your deal?
The FCA has been reviewing discretionary commission arrangements (DCAs). Find out if you were affected and how to complain — first to your lender, then the Ombudsman.
Commission & complaints →Common questions
Will applying hurt my credit score?
A quotation (soft) search doesn't affect your score — always ask for this first. A full application (hard) search leaves a footprint. Several hard searches in a short window can look risky, so compare with soft searches, then apply once.
Can I get car finance with bad credit?
Possibly, through near-prime or subprime lenders — but expect higher APRs (often 15–30%+), lower advances and shorter terms. Clear priority debts first, check your files at Experian, Equifax and TransUnion, and never pay an upfront "broker fee" to an unknown firm — that's a classic scam marker.
Is FinanceCheckPro UK a lender or broker?
Neither. We're an independent information site. We don't arrange credit, handle applications or take commission. Always confirm terms in the lender's own documents (SECCI + agreement) before signing.