How To Buy a Car Through Finance?


Buying a car outright isn’t feasible for a lot of people, so there are different options to finance the vehicle that you are interested in. When financing with Richard Lawson Autoecosse, there are 2 main types of financing: hire purchase (HP) and personal contract purchase (PCP).

Hire Purchase (HP)

Hire Purchase is hiring the car from the lender until the car is paid off in full. Once the monthly payments are complete, you will then own the vehicle. The more you can afford for a deposit, the lower your monthly payments will be.

A fixed monthly payment over a certain period is then agreed and you own the car after the final payment. The finance agreement will then end.

If you want to pay off the settlement figure earlier then this can be arranged by contacting your lender. The monthly payments on HP are higher than those of PCP. A huge benefit of HP is that you own the vehicle after the payment period ends.

Personal Contract Purchase (PCP)

A PCP agreement is similar to a hire purchase agreement, in that a deposit is often paid followed by fixed monthly repayments. The deposit amount can vary but the more you pay for the deposit, the cheaper the monthly payments will be.

The most common period of time for a vehicle on PCP is 48 months but it can vary from 12 months to 60 months. The longer the contract, the less the monthly payments will be. After the time period ends, the vehicle is returned to the lender. PCP is a great option for those who like to more regularly change their car and upgrade to the latest models.


Need help with any part of the car buying or PCP and HP finance process? Get in touch with our expert team today! Our friendly, professional and helpful team is always on hand to help. Please call us on 01382 477992.