New Car Finance

PCP, PCH and HP – How Does Car Finance Work?

Our customers often come to us with questions about new car finance. Here, we’ll take a look at some of the answers to questions like: What is PCP finance? What is Hire Purchase finance? And, how does car finance work? PCP is the abbreviation for a Personal Contract Plan, PCH stands for Personal Contract Hire, whilst Hire Purchase is often shortened to HP. At Brayleys, we’ll help you get the best possible deal and the right finance agreement for you. If you have any questions about car finance, please contact us. We’ll be happy to talk you through the options.

Understanding car finance can go a long way to making sure you make the right decisions and get the best deal when choosing a new or used car. Our finance agreements are designed to make it easier for you to get the car you really want, so our focus is on flexibility, simplicity and affordable monthly payments. We like to pass on any manufacturer deals to you and we often have our own exclusive finance deals available, offering reduced monthly payments and generous deposit contributions. Take a look at all our latest Honda offers, Kia offers, Mazda offers, Renault offers and Dacia offers.

What is PCP Finance? About your Personal Contract Plan

A Personal Contract Plan or PCP agreement is a flexible way of paying for your car. Having chosen the car you want, you can then decide how much deposit you want to pay, how long your finance agreement will run for and the maximum number of miles you will do per year. When your PCP agreement comes to an end, you can make a choice from the three options available.


  1. Buy your car outright after a final optional payment, an amount pre-agreed at the start of your Personal Contract Plan.
  2. If you have taken proper care of the car and not exceeded your annual mileage limit, you can return the car and have nothing more to pay.
  3. You can have a brand new car by renewing your PCP agreement.


Advantages of a Personal Contract Plan from Brayleys include:

  • You can get a new car more frequently, meaning access to the latest models
  • Flexibility of how much you put down as a deposit
  • You choose your repayment term and the amount of your monthly payment
  • Monthly payments on your PCP will usually be less over the same term than for an HP agreement
  • Fixed monthly payments mean you always know exactly how much you’ll have to pay
  • When your PCP comes to an end, you can buy your car and own it outright, return it with nothing more to pay or renew your PCP on a brand new car

What is Hire Purchase Finance? HP explained

Most people know a bit about Hire Purchase, as it’s been around for some time. HP could well be the best finance type for you, if you prefer to have no restrictions on how many miles you do. It also has the advantage that you own the car at the end of the HP agreement.

A Hire Purchase agreement requires you to pay an initial deposit, but you can then decide on how long you want the HP agreement to last, usually a term of between one year and five years. The length of the agreement determines the level of your monthly payments; the longer the agreement, the less you’ll need to pay each month. When the agreement ends, you’ll own the car outright with nothing else to pay. That means you can continue to drive, pass it on to another family member or use it as a trade-in against a newer car


Advantages of a Personal Contract Hire agreement from Brayleys include:

  • Flexibility in the amount of your initial rental fee
  • Flexibility in the length of your rental agreement
  • Your monthly rental payments are fixed in advance
  • Just return the car when your PCH agreement ends
  • No worries about depreciation or selling the car

Ask Brayleys about new car finance

For more information about financing your car at Brayleys, please call us or send us a car finance enquiry