Deciding how to pay for your car is a big decision, and you may have several options to choose from, such as paying cash, getting a personal loan or arranging finance through a garage. Before you start looking at cars, work out how much you can afford to spend.
PCPs are similar to hire purchase agreements. They are quite complex compared to other types of finance so it’s important to fully understand what you are signing up to.
Many ‘car finance loans’ offered by garages and some lenders are actually hire purchase agreements. Find out more about how they work.
There are a number of things to think about before you take out a personal loan for a car. How much can you afford to borrow and how long should you borrow for?