We offer both HP (Hire Purchase) and PCP (Personal Contract Purchase) finance to UK residents. Both are ways to spread the cost of purchasing a hybrid car over several years, usually 3 to 6. Whether you choose HP or PCP is a matter of personal choice and lender approval. PCP monthly payments are generally lower compared to HP, but you won’t own the car at the end of the agreement term and will need to pay a lump sum (balloon payment) to keep it. Alternatively, you can refinance your PCP agreement rather than pay the balloon payment. 

Whilst many of the Government grants have been available exclusively for fully electric cars, you might be able to get financial assistance when installing a charging point outside your home. Find out more by visiting Government Grant Schemes for Electric Vehicles.

Thankfully, you’re able to refinance vehicles that have been purchased via HP and PCP. If you have bought PCP and want to avoid the costly balloon payment option at the end then it is recommended that you:

• Work on improving your credit score, the sooner the better after purchasing the car. The better your credit score, the better the rate of your finance, and the lower your monthly finance cost is.

• Then speak to one of our specialists to find out what options are available to you, in plenty of time before the final balloon payment is due. You will need to re-apply for finance and your options will be based on your financial status and lender approval. It could be that you can take out another finance agreement to pay off the final amount owed on the car, but every case is different so please speak to our specialists to find out more based on your personal circumstances.

PCP finance, or Personal Contract Purchase vehicle finance, is another type of finance agreement that allows you to spread the cost of purchasing a vehicle over a period of time. It is similar to Hire Purchase (HP) finance, but with some important differences.

With PCP finance, you typically pay a deposit upfront, followed by monthly payments over a fixed term, which is usually between 2 and 4 years.

Let's say you bought a car on PCP finance, at the end of the term, you have three options:

You can return the car to the lender and walk away, with nothing more to pay (assuming you have met the agreed mileage limit and the car is in good condition).

You can choose to make a "balloon payment" to purchase the car outright. This is a large final payment that covers the remaining balance on the car.

You can use the car as a trade-in for a new car, and start a new PCP car finance agreement.

One of the advantages of PCP finance is that your monthly payments are typically lower than with HP finance, as you are only paying off a portion of the car's value over the term of the agreement. Additionally, at the end of the agreement, you have the flexibility to choose whether to keep the vehicle or return it.

However, it's important to note that if you choose to return the vehicle, you will not own it and will need to find another vehicle to use. Additionally, if you exceed the agreed mileage limit or the vehicle is in poor condition, you may be charged additional fees.

HP finance, or Hire Purchase finance, is a type of finance agreement that allows you to spread the cost of purchasing a vehicle over a period of time. It involves paying a deposit upfront, followed by monthly payments over a fixed term, typically between 1 and 5 years.

During the term of the agreement, the lender technically owns the vehicle, but you can use it as if it were your own. Once you have made all the payments, including any interest charged, you become the legal owner.

With HP finance, for instance, the interest rate is fixed at the start of the agreement, which means your monthly payments will stay the same throughout the term of the agreement. This makes budgeting easier and more predictable.

It's important to note that if you fail to keep up with the payments, the lender has the right to repossess the vehicle. So, before taking out an HP car finance agreement, or any other type of vehicle finance, it's important to ensure you can afford the monthly payments.

If you feel ready to apply for HP finance, use our vehicle finance application to establish your eligibility.