Car finance explained: everything you need to know when buying a car

From personal contract to hire purchase and leasing, we explain the different car finance options to cut the cost of getting behind the wheel

Salesman handling keys to customer
(Image credit: Getty Images)

Navigating your way round car finance options isn't easy - from PCP, leasing to hire purchase deals - you may be wondering which one is best and how they work. 

Record numbers of drivers got on the road with new cars during 2023 and data from the Society for Motor Manufacturers and Traders showed there were 1.9 million new cars registered in 2023 – a 17.9% annual increase and the best year since the pandemic.

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Marc Shoffman
Contributing editor

Marc Shoffman is an award-winning freelance journalist specialising in business, personal finance and property. His work has appeared in print and online publications ranging from FT Business to The Times, Mail on Sunday and the i newspaper. He also co-presents the In For A Penny financial planning podcast.