Popular Car Finance Types

Hire Purchase (HP)

Hire Purchase is the most traditional way to finance a vehicle and is ideal if your ultimate goal is to own the car outright. After paying an initial deposit, you pay off the remaining value of the car in fixed monthly installments over a set period, usually between one and five years. Because you are paying for the entire cost of the vehicle, the monthly payments are typically higher than other finance types. However, once the final payment is made, the car is yours. There are no mileage restrictions to worry about, making it a great choice for high-mileage drivers who plan on keeping their vehicle for a long time.

Personal Contract Purchase (PCP)

Personal Contract Purchase is the most popular finance option because it offers lower monthly payments and maximum flexibility. Instead of paying for the whole car, your monthly installments only cover the predicted depreciation of the vehicle over the term of the agreement. When your contract ends, you have three distinct options: you can pay a final "balloon payment" to keep the car, hand the keys back and walk away, or part-exchange the vehicle and use any remaining equity as a deposit for your next car. This is perfect for drivers who like to upgrade to a newer model every few years while keeping their monthly outgoings manageable.

Personal Contract Hire (PCH)

Personal Contract Hire is essentially a long-term rental agreement. You pay an initial rental fee followed by fixed monthly payments to use the car for a set period, usually two to four years. Unlike HP or PCP, there is no option to buy the car at the end of the agreement; you simply return the vehicle to the finance company. PCH is an excellent "hassle-free" option because maintenance packages can often be included in the monthly cost, and you never have to worry about the car’s future resale value. It is best suited for those who want to drive a brand-new car every few years without the responsibilities of ownership.

0% Finance

Drive away in a new car without the extra cost of interest. With 0% APR Representative finance, your monthly payments cover only the vehicle’s price—not a penny more. It’s a simple, interest-free way to spread the cost and stay in total control of your budget.

Bad Credit Finance

If you’ve had credit challenges in the past, you may still be able to finance your next car with Richard Hardie. We work with a panel of specialist lenders who consider more than just your credit score, looking at your current circumstances to find a solution that works for you. This means you could still spread the cost of your car with manageable monthly payments, even if you’ve been declined elsewhere. Our team is here to guide you through your options in a clear and straightforward way, helping you get on the road with confidence. Finance is subject to status and terms, and rates may vary depending on your individual circumstances.