What's the difference between an unsecured car loan, hire purchase and personal contract purchase car finance?

Updated 1 month ago

With unsecured personal loans, you can use the money you borrow from us to buy and own the car outright. Check out your rate on our loans page.

For hire purchase (HP) and personal contract purchase (PCP), we pay the dealership directly and the loan is secured against the car. This means that Zopa own the car until the loan has been paid off. We run checks on your car to ensure it’s in good condition and can support you if you need help finding a car.

With PCP, you typically have lower monthly payments than HP and personal loans. This is because you don’t have to pay the full value of the car unless you’d like to own it. At the end of the PCP agreement, you can choose to return the car, part exchange it for a new one, or pay an optional final payment to own the car outright.

Please note that you may need to put down a deposit at the beginning of an HP or PCP agreement.

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