One of the most popular ways to finance a used car. You pay a deposit (if required), followed by fixed monthly payments over an agreed term. With Hire Purchase, ownership generally transfers after all required payments and contractual conditions are satisfied. With PCP, an optional final payment is usually required if you wish to own the car.

Lower monthly payments than HP, with the option at the end of the agreement to:

• Pay the final balloon payment and keep the car
• Hand the car back
• Part-exchange it for a new one