Is HP the right option for me?

There are so many different options when it comes to buying a car, it can be difficult to choose. We've highlighted the main benefits and pitfalls of choosing HP here:

Pros

• You can spread the cost, meaning you can get a better car than if you had to pay upfront.
• It's simple to arrange and understand.
• It's flexible – with terms up to 5 years.
• You would own the car once you’ve made all payments.
• HP can be easier to get than a standard, unsecured loan for people with poor credit histories (as the car is used as collateral).
• Your name will be on the V5 registration document as the registered keeper.

Cons

• Monthly payments are higher than for PCP deals (View our guide to PCP here).
• You don’t own the car until you make the final payment.
• If you fail to keep up payments, the finance company may take the car away (it can do this without a court order until you’ve paid a third of the total amount).