FIRST VEHICLE MANAGEMENT

Comparing Vehicle Finance

Look beyond a monthly payment and record the complete structure of a written vehicle finance proposal.

Identify the type of agreement

Hire purchase, personal contract purchase and personal contract hire are different arrangements. With hire purchase, you normally hire the vehicle while making payments and ownership transfers after the agreement's conditions are met. PCP generally includes an optional final payment if you choose to own the vehicle. Hire arrangements need to be understood on their own terms.

MoneyHelper explains hire purchase and provides a broader comparison of ways to buy a car. Read the provider's actual documents before relying on a general description.

Put the proposal on one page

Record the vehicle, cash price where stated, deposit, number of payments, payment amounts, term, rate information and total payable. Add any final payment and charges separately. If a figure is missing, mark it as a question rather than calculating an assumption into the comparison.

Keep optional service or protection products separate from the vehicle agreement. Ask which items are required, which are optional and how they change the amount payable. Two offers with different included products need that difference explained.

Check the end as carefully as the beginning

  • What options are available at the end of the term?
  • Is a further payment required to own the vehicle?
  • What mileage, condition or use conditions apply?
  • What happens if circumstances change before the agreement ends?
  • Which questions need a written response from the provider?

Keep the decision and the documents together

A comparison is useful only if it refers to the offer you actually receive. Keep dated quotations, explanations and the final terms together. Recheck the figures when an offer changes rather than carrying forward an earlier monthly amount.

This page is general information and does not recommend an agreement for your circumstances. The website does not arrange finance, assess affordability, approve credit or accept applications. Return to vehicle topics to consider sourcing and operational needs alongside the finance structure.