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When it comes to purchasing a car, finding the right financing option is crucial to making your dream vehicle a reality. With a variety of financing methods available, it’s important to understand how each one works to make the best choice for your financial situation. Here, we will take a look at the different car financing options, from leasing to dealer financing and more. We’ll provide detailed information on how each option functions, what to expect during the application process, and tips for securing the best rates and terms. Whether you’re looking to buy a new or used car, our comprehensive guide will help you navigate the financing landscape, making your car-buying experience smooth and stress-free. 

Hire Purchase

Hire Purchase, or Personal Motor Loan, is a great way to spread the payments of your new car, rather than splitting between monthly payments and large balloon payments.

At the end of a Hire Purchase agreement, you will completely own the vehicle, subject to a transfer of ownership fee (if applicable).

Find out more about HP finance

Personal Contract Purchase (PCP)

Personal Contract Purchase is a finance option that splits the value of the vehicle into 3 elements; the deposit, monthly payments and the guaranteed future value (GFV) optional final payment. 

PCP has a lot more flexibility than a standard Hire Purchase finance agreement and can usually result in lower monthly payments.

Find out more about PCP

Leasing/Personal Contract Hire (PCH)

Personal Contract Hire, also known as leasing, is an excellent way to finance your new car without the responsibilities of ownership.

It allows you to drive a brand-new vehicle for an agreed period, typically ranging from 24 to 48 months, by paying fixed monthly rentals.

Find out more about leasing

Business Contract Hire

Business Contract Hire is a popular and hassle-free way for businesses to finance their vehicles. It allows you to lease brand-new cars for an agreed period, typically ranging from 24 to 60 months, without the burden of ownership.

With a fixed monthly rental fee, you can effectively manage your fleet and focus on your core business operations.

Find out more about Business Contract Hire

Personal Loan

A personal loan could be a viable way to fund your new car. Personal loans can be sourced from your bank or from a wide range of independent loan providers.

With this option, the loan is not tied to the car, so you will own the vehicle from day one and still benefit from fixed monthly payments. 

If you are going to choose a personal loan to finance your vehicle, we would always recommend using a trusted lender and researching competitive rates and products to ensure you're getting the best deal.

Cash Purchase

If you are in the fortunate position to do so, any vehicle can be purchased outright in cash. Financing is not a requirement of vehicle purchasing and if you choose to make a cash purchase you will benefit from no additional lending, no interest and no monthly payments. The car is yours from the day you drive away.

Some vehicle manufacturer's offer incentives for customers choosing to finance their vehicle, so, if you are in the position to do so, it may be worth weighing up whether any saving or additional benefit offered with a finance deal is worth considering before committing to a cash purchase.
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Chippenham Motor Company Ltd is an Appointed Representative of Automotive Compliance Ltd, who is authorised and regulated by the Financial Conduct Authority (FCA No 497010). Automotive Compliance Ltd's permissions as a Principal Firm allows Chippenham Motor Company Ltd and MRG to act as a credit broker, not as a lender, for the introduction to a limited number of lenders and to act as an agent on behalf of the insurer for insurance distribution activities only.

We are a credit broker and not a lender. We can introduce you to a carefully selected panel of lenders, which includes manufacturer lenders linked directly to the franchises that we represent. We act on behalf of the lender for this introduction and not as your agent. We are not impartial, and we are not an independent financial advisor.

Our approach is to introduce you first to the manufacturer lender linked directly to the particular franchise you are purchasing your vehicle from, who are usually able to offer the best available package for you, taking into account both interest rates and other contributions. If they are unable to make you an offer of finance, we then seek to introduce you to whichever of the other lenders on our panel is able to make the next most suitable offer of finance for you. Our aim is to secure a suitable finance agreement for you that enables you to achieve your financial objectives. If you purchase a vehicle, in the majority of cases, we will receive a commission from your lender for introducing you to them which is either a fixed fee, or a fixed percentage of the amount that you borrow. This may be linked to the vehicle model you purchase.

Different lenders pay different commissions for such introductions, and manufacturer lenders linked directly to the franchises that we represent may also provide preferential rates to us for the funding of our vehicle stock and also provide financial support for our training and marketing. But any such amounts they and other lenders pay us will not affect the amounts you pay under your finance agreement; however, you will be contributing towards the commission paid to us with the interest collected on your repayments. Before we propose you to a potential lender, we will inform you of the likely amount of commission we will receive and seek your consent to receive this commission. The exact amount of commission that we will receive will be confirmed prior to you signing your finance agreement.

All finance applications are subject to status, terms and conditions apply, UK residents only, 18s or over. Guarantees may be required.

Chippenham Motor Company Ltd is an Appointed Representative of Automotive Compliance Ltd, who is authorised and regulated by the Financial Conduct Authority (FCA No 497010). Automotive Compliance Ltd's permissions as a Principal Firm allows Chippenham Motor Company Ltd and MRG to act as a credit broker, not as a lender, for the introduction to a limited number of lenders and to act as an agent on behalf of the insurer for insurance distribution activities only.

We are a credit broker and not a lender. We can introduce you to a carefully selected panel of lenders, which includes manufacturer lenders linked directly to the franchises that we represent. We act on behalf of the lender for this introduction and not as your agent. We are not impartial, and we are not an independent financial advisor.

Our approach is to introduce you first to the manufacturer lender linked directly to the particular franchise you are purchasing your vehicle from, who are usually able to offer the best available package for you, taking into account both interest rates and other contributions. If they are unable to make you an offer of finance, we then seek to introduce you to whichever of the other lenders on our panel is able to make the next most suitable offer of finance for you. Our aim is to secure a suitable finance agreement for you that enables you to achieve your financial objectives. If you purchase a vehicle, in the majority of cases, we will receive a commission from your lender for introducing you to them which is either a fixed fee, or a fixed percentage of the amount that you borrow. This may be linked to the vehicle model you purchase.

Different lenders pay different commissions for such introductions, and manufacturer lenders linked directly to the franchises that we represent may also provide preferential rates to us for the funding of our vehicle stock and also provide financial support for our training and marketing. But any such amounts they and other lenders pay us will not affect the amounts you pay under your finance agreement; however, you will be contributing towards the commission paid to us with the interest collected on your repayments. Before we propose you to a potential lender, we will inform you of the likely amount of commission we will receive and seek your consent to receive this commission. The exact amount of commission that we will receive will be confirmed prior to you signing your finance agreement.

All finance applications are subject to status, terms and conditions apply, UK residents only, 18s or over. Guarantees may be required.
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