The world of car finance is quite intriguing. Although it’s been around for almost as long as vehicles have existed, it remains a mystery to those who have not gone through the process of buying a car before. It can be a little intimidating at first, but that’s perfectly normal, as it can be hard to wrap your head around everything that it involves. There are countless ways to purchase a car on finance, some of which are more popular than others. Choosing the right option can greatly maximise your chances of having a successful experience, which is why it’s crucial that if you’re thinking about buying a car you conduct thorough research prior to applying for finance anywhere.

Personal Contract Purchase, better known as PCP, and Hire Purchase are two of the most popular methods of financing a vehicle. Although they both differ slightly, they follow a similar path that leads to you receiving your desired vehicle and paying for it over a period of time. No one can tell you which option to choose; however, what we can do is guide you toward the best decision based on your current situation.

When it comes to personal contract purchase, it may seem a little complex at first. It’s amongst the most popular ways of financing a car, with thousands of people each year benefiting from the benefits that it offers. So you’ve decided to purchase a car through PCP, what now? Well just as you would expect, you choose a vehicle that you’re interested in and you receive it following the approval of your application. You then pay for the car in regular payments, which are usually slightly lower due to the nature of the process that we are going to get to in a while. With PCP you are virtually leasing the car until your term comes to an end, which is when you are faced with a decision. You can either keep the vehicle by paying a large final payment, refinance the car for another vehicle starting the process over or you can simply return the car and go on with your life. Due to the nature of it PCP is ideal for people who aren’t sure what car they want. It allows you to change things up every couple of years, giving you a lot of freedom.


Hire purchase on the other hand follows a similar pattern; however, it’s slightly different. You still choose a car that you desire, but instead of having the option to trade it in at the end of your term, you make payments to eventually own the car. Whilst you’re still making payments the vehicle doesn’t officially belong to you. Only when you make the final payment does the car officially become yours. If you fail to make payments, the car is simply repossessed and your credit score becomes affected. This option is available for virtually everyone, due to the fact that it offers a lot of protection to the finance provider, as well as yourself.

Now that you know about both methods, how to decide which one suits you best? Unfortunately we can’t tell you what to do as each individual has different circumstances, we can help you make up your mind. Whereas PCP is best suited for people with excellent credit scores, hire purchase is perfect for anyone. Both options come with a lot of perks, but not everyone is eligible for them both. As mentioned above PCP is normally reserved for those with an excellent credit score. Those who have bad credit can still apply for hire purchase however. As you can probably tell, choosing the right option can be difficult. Depending on the service you go with, you will likely be advised about the options available. Any reputable finance provider will guide you through the process and suggest the best possible solutions based on your situation. If they’re not willing to help, then perhaps it’s best that you choose a lender that’s committed to getting you the best deal possible. There are thousands of finance providers out there, so you don’t have to settle for the first one that you see. Shop around a little and you’ll find what you are looking for in no time whatsoever.

At Trusted Car Credit we are committed to helping people get behind the wheel of their dream car. Anyone can apply, and although no one is guaranteed finance we aim to do our best in order to find the most suitable deals for everyone. All you need to do to get the process started is fill out our online application and if you meet our criteria one of our staff will get back to you shortly. Whether you’re after an old car or the latest model on the market, we promise to do our best to help you come one step closer to owning the car you’ve always desired. Buying a car has never been easier, so don’t hesitate any longer – contact us today and benefit from a variety of exciting perks.