Types of car finance explained
Our guide below is sure to benefit you along your own personal journey to getting your next car – whichever route you choose to go down.
What are the different types of car finance?
Hire Purchase (HP)
Hire purchase means that you’re hiring the car from the lender until you’ve paid for it in full. The loan is secured against the vehicle itself, and you won’t officially own it until the final payment has been made.
Personal Contract Purchase (PCP)
A personal contract purchase (PCP) agreement is similar to a hire purchase agreement, in the sense that you’ll have the option to pay a deposit followed by fixed monthly repayments over a set period of time (typically 24-48 months).
Guarantor Loans
Designed to help individuals with poor or limited credit, guarantor car loans are a form of secured lending that can pave the way to vehicle ownership.
How it works
Ready to get started? Let us help. We offer a quick decision to put you in the driving seat as quickly as possible. The Zap way.
Simply choose the amount you wish to borrow and make your finance application on line or over the telephone. Your own dedicated account manager will make sure you are given all the information you need without the jargon.
If you are not sure how to start looking for your next dream purchase we can help. We have access to a large dealer network with a huge range of vehicles to choose from. Let us take the hassle of out of searching and help you find your next dream car.
We can help you work out how much you want to spend and find the best way of financing the vehicle of your dreams. The easy way, the Zap way.
Frequently asked questions
What if I’ve been refused elsewhere?
We’re often able to help customers that have been refused elsewhere.
If you’ve applied somewhere else (such as a bank, car dealership or even another car finance broker) and have not been successful, you might start to think that nobody can help. However, that doesn’t have to be the case. Some of the lenders we work with specialise in helping people with bad credit to get car finance, so we’ll try our best to find the right finance option for you.
