Four Ways You Can Finance Your Next Car

If your car has finally packed in (or looks as though it may be on its way out), then it’s seriously time to consider getting something new. However, finding the right funding can be difficult and it’s hard to work out which one is best. In this post, we talk you through the options, giving you a helping hand.


If you have the cash to buy (including part exchange), then this is comfortably the best option. However, due to the amount of cash required, it’s an option that isn’t available to everyone.

Cash is a great option because it means that:

  1. You immediately own the vehicle so you’re free to sell whenever you wish
  2. You don’t owe any interest payments on the vehicle so you could be saving thousands of pounds over 3-5 years.

However, as we say, it isn’t an option for everyone, so your other options are…


If you’re not bothered about physically owning the vehicle, then leasing is a great option. With leasing, you don’t own the vehicle and you’re effectively renting it for the term of your contract.

You usually have an upfront payment to start with, followed by regular monthly payments spread over the term of the contract. You can find details through online operators, and it usually works out cheaper than financing a vehicle outright.

Hire Purchase

A hire purchase agreement involves the same regular payments as a leasing deal, but you physically own the car at the end of the deal.

Due to the fact that you eventually own the car, the repayments are often higher. However, you’re free to do whatever you wish with the car at the end of the agreement and can even use it as part exchange for your next car.

Personal Contract Purchase

Personal Contract Purchase agreements (also known as PCP deals) are flexible deals where you have the option to buy the car at the end of the deals. Again, you have low monthly payments, but this means that the cost of purchasing the car at the end of the deal is high.

The final payment is known as a ‘balloon payment’, and it is only after this payment that the car becomes yours.

To conclude, when you’re buying a car you have a number of options available. Although buying with cash is preferable, it’s not an option for many, so look into leasing, hire purchase agreements and personal contract purchase options to see which is right for you.