We use cookies on Auto Trader so we can show you the most relevant content and ads, and keep improving our site. By continuing to use our site you consent to the use of cookies. See our privacy and cookie policy.
Security Selling Safely: How to stay safe when selling on Auto Trader Close
Popular and Recommended
Top 5 best city runarounds Should I buy winter tyres for my car? How to spot and avoid potential scams Buying a car using a Personal Contract Purchase (PCP) How to prepare your car for winter Buying a car using Hire Purchase (HP) How do I lease a car using contract hire (PCH)? Applying for car finance

New Car finance

What are the ways you could pay for your new car, and what are the pros and cons?

Guide 1 month ago

Buying a car using a Personal Contract Purchase (PCP)

PCP is the most popular type of car finance. You pay an initial deposit, followed by lower monthly instalments for the remainder of the term, to pay of a proportion of the loan amount. At the end, you have to option to pay a large final payment to clear the remaining balance and own the car outright, or hand it back, or exchange it for another car.
Guide 1 year ago

Buying a car using Hire Purchase (HP)

A way of buying where you pay a deposit up front, then pay off the rest of the balance – plus interest – in equal monthly instalments. The repayments are comparatively high, but don’t change until the end of the agreement. Provided you keep them up, you will know exactly how much you are paying, and for how long. The car is yours at the end of the agreement.
Ford Fiesta Feature 7 months ago

Best new car deals

Looking for a new car? Don't get caught paying over the odds. Here's our guide to some of the best deals available.
Guide 1 year ago

How do I lease a car using contract hire (PCH)?

This is a method of leasing rather than getting finance to buy, but it’s still a way of getting a new car for affordable monthly payments. You pay a deposit and monthly instalments, both of which tend to be lower than with HP or PCP, but never own the car. At the end of the agreement, hand it back, or sign up to another agreement.
Guide 1 year ago

Applying for car finance

If you’re thinking about buying a car on a finance agreement, find out everything you need to before committing to a contract.
Guide 1 year ago

Car finance explained

If you’re trying to get your head around car finance, and you don’t know your balloon payments from your monthly instalments, and your PCPs from your PCHs, let us help you understand them.

More collections from Auto Trader

Collection 42 articles

New Cars 2018

All the best and most exciting cars being launched in 2018
Collection 14 articles

Car jargon explained

There are a lot of terms used in the car industry that can be confusing. Whether it's a new piece of car safety or entertainment technology, or how a car works, our experts are here to explain it all.
See all our articles
Browse the latest from our team
Car reviews
Search our independent reviews of every new car
 First drives
Get our first impressions of the latest new models
 Advice
Help from our experts on all aspects of motoring life
 News
Read the latest stories from the automotive industry
 Features
New-car comparison tests, road trips and used cars
 Best ofs
We pick the right cars to meet your individual needs
 Long-term reviews
Find out what a car is really like to live with everyday
 I bought ones
Watch real owners tell us about their cars
 Guides
Help from our experts on all aspects of motoring life
 Collections
Curated collections of articles from our editorial team
Meet the Auto Trader team
Erin Baker
Editorial director
Erin spent most of her career as a motoring journalist on The Daily Telegraph. Still enjoys fast cars, but spends most of her free time driving round four kids in a SUV.
Ivan Aistrop
Road test editor
Ivan has been testing cars and writing reviews since 2000. There aren't many motors out there that he hasn't driven.
Phill Tromans
Senior road tester
A journalist since 2001, Phill spent more than a decade testing cars in the UK and abroad, working for Autocar, Fleet News and Evo Middle East.
May Starey
Video & image editor
May manages all of Auto Trader's editorial photo and video activity, along with our YouTube channel.
Rachael Hogg
Digital editor
Rachael has been a journalist since 2012, covering all aspects of the motor industry. She manages and writes Auto Trader’s content.
Back to top