PCP, HP, leasing and subscriptions.
Comparison · Leasing and finance
Hire purchase is a path to ownership with payments that cover the full value. Personal contract purchase lowers monthly payments by deferring a large final amount, giving you a choice at the end to pay it, hand the car back or trade it in. Leasing is long-term rental with no ownership option in most cases. Each structure moves risk differently, particularly around mileage, condition and early exit, so compare terms and total payable rather than the monthly figure.
How to choose · Leasing and finance
Judge a finance offer by the total amount payable, the rate type and how it is calculated, fees, term, deposit and what happens if circumstances change. Obtain at least one alternative quote, such as a personal loan or credit union loan, before visiting the dealer. Understand any commission arrangements and any add-ons that have been bundled in. This describes how to evaluate offers; it is not advice on which to take.
Alternatives · Leasing and finance
Subscriptions bundle the car, insurance, tax and often maintenance into one payment with short commitments, which suits people who need flexibility or are unsure about their future needs. Leasing usually carries a longer commitment and lower cost for a fixed period. Car clubs and rentals fit occasional use. Compare what is included, notice periods, mileage limits and how costs behave if your needs change.
Requirements · Leasing and finance
As an agreement ends you usually choose among handing the car back, keeping it by paying a final amount, or trading it in for another agreement. Handing back requires meeting mileage and condition standards that are assessed by an inspector. Prepare early by reading the contract, checking the car against the wear guide, arranging any repairs yourself if cheaper, and documenting the handover with photographs.