Finance options

BuyaCar gives you access to a range of finance packages that offer plenty of flexibility to help you find the deal that suits you

May 21, 2021

Our panel of lenders provides a range of personalised finance packages, with flexibility, low interest rates and affordable monthly payments, so you should be able to find the right kind of finance to suit your circumstances.

Whether you’re looking to pay the lowest overall cost to own your next car, want to keep monthly payments to an absolute minimum or need the greatest possible flexibility - with the ability to hand the car back early, for instance - you’ll find there's a finance option to suit.

The options available include PCP finance, Hire Purchase and PCH leasing. Keep reading for more information on how these work and for help in deciding which one is right for you.

You can adjust the size of your deposit to find the best balance for you, too - making it larger to get lower monthly payments or going for a smaller upfront payment if you don’t have much spare cash. You can even source finance for a car with no deposit at all, in many cases.

Other factors you can tweak include the length of a finance contract and the mileage limit. Longer contracts tend to mean lower monthly payments, but will mean you’ll pay more in interest overall. Meanwhile, lowering the mileage limit can also help you find a lower monthly payment level, though you'll need to stick to this cap to avoid end-of-contract excess mileage charges.

If you already have a good idea of the best type of finance for you, click on the calculator above to apply for finance now and see what you can get for your budget. Meanwhile, if you want to find out more about your options, scroll down for more details on the most popular ways of spreading the cost of your next car.

Watch our video guide below for an overview of the main options, to get a feel for which one best suits you. And keep reading for all the details about how PCP finance, Hire Purchase and PCH leasing work.

Personal Contract Purchase (PCP)

PCP is the most popular type of car finance. It offers the opportunity for comparatively low monthly payments for new or used vehicles because you're only paying for part of the cost of the car.

At the end of the contract term, you can hand the car back with nothing more to pay - provided you're within the pre-agreed mileage limit and have kept the car in good condition. If you want to keep it, then you can refinance or make the optional final payment to buy it outright. Alternatively, you can take the option to effectively trade the car in, putting any equity - extra value you have left over where the car is worth more than the remaining balance - towards a deposit on a new PCP agreement, reducing the monthly payments on your next car. Read more

How PCP finance works

1. Deposit & delivery
  • The larger the deposit, the lower your monthly payments
  • A zero-deposit option is often available
2. Monthly payments
  • A fixed payment is due every month for the length of the agreement
  • You only repay part of the car's cost, which keeps payments low
3. Buy / return / upgrade
  • At the end of the contract, you can either pay the remaining balance or refinance to keep the car
  • OR Return the car and owe nothing (provided it's in good condition and under pre-agreed mileage limit)
  • OR Trade-in for another car if there's any equity (if the car is worth more than outstanding balance)

Hire Purchase (HP)

HP agreements split the entire cost of a new or used car into a series of monthly payments. Once you’ve made the final payment, the car is yours. Because the payments cover the full cost of the car, they are higher than with PCP finance, but there is no large optional final payment at the end of the contract term. In fact, with HP, once you have completed all the monthly payments, you automatically own the car in its entirety. Read more

How HP finance works

1. Deposit & delivery

  • Putting down a larger deposit reduces the amount owed, shrinking monthly payments. Zero-deposit options may be available

2. Monthly payments

  • Pay for the rest of the car with a series of fixed monthly payments

3. You own the car

  • Once the final monthly payment is made, the car is automatically yours

Leasing (PCH)

Leasing can offer one of the cheapest ways of getting access to a brand new car, because it works like a long-term form of car rental.

After an initial payment, you make a series of fixed monthly payments. At the end, you simply hand the car back, typically with no option to buy the car. Read more

How car leasing works

1. Initial payment

  • Initial payment is usually the equivalent of 3 to 12 monthly payments

2. Monthly payments

  • Fixed monthly payments run for the length of the agreement

3. Return the car

  • Once all the payments are made, you have to return the car


Read more about: