HP (Hire Purchase) car finance lets you own a vehicle by making monthly payments over a set period, typically 2 to 5 years, without a large final payment. Once the payments are complete, you own the car outright.

PCP (Personal Contract Purchase) car finance is a flexible auto financing option that involves making monthly payments over a fixed term, often 2 to 5 years, allowing you to drive a new or used vehicle. At the end of the contract, you have the choice to buy the car by paying a final balloon payment, return it, or start a new PCP agreement.

LP (Lease Purchase) Also known as Hire Purchase with a Balloon. A finance agreement where you pay a deposit and monthly instalments over a fixed term, with a large final balloon payment due at the end to take full ownership of the vehicle. This structure lowers monthly costs by deferring part of the price, making higher-value cars more accessible. Unlike hire purchase, you're obligated to buy the car at the end, and you can sometimes refinance the balloon or settle early.