• Published: 27 July 2022

Hire Purchase (HP) and Personal Contract Purchase (PCP) are the most common types of car finance. We offer competitive car finance plans to suit all budgets. However, with any type of finance, it’s important to make sure you understand it fully. We think it’s important to give our customers all of the facts before they make their final decision. So, we’ve put together a guide into both types of car finance so you can decide what would best suit you.

Hire Purchase Finance

Hire Purchase is particularly suitable for customers who want to keep their car for longer than the repayment period or want flexibility with payments. It would also be ideal for those who have high mileage or those who don’t know what their annual mileage will be.

How does Hire Purchase work?

1. Choose the car you like from our forecourt

2. Choose your repayment method and time frame

3. Agree on a deposit and monthly repayment to suit you

4. When all finance is paid at the end of the agreement, the vehicle is yours

Benefits of Hire Purchase

Fixed interest and monthly payments mean that you always know what you’re going to be paying out. Additionally, there are no restrictions in terms of mileage as well as the payments. Also, the finance can be settled at any time depending on your circumstances.

Personal Contract Purchase Finance

Personal Contract Purchase is suitable for customers who wish to change their car at intervals between 24 and 48 months. This reduces the worry of depreciation and creates certainty about annual mileage.

How does Personal Contract Purchase work?

1. Choose a car from our forecourt

2. Choose your repayment period

3. Agree on an annual mileage

4. Decide how much deposit you want to pay

5. A Guaranteed Minimum Future Value is given by the lender, which is the final optional payment

6. At the end of the monthly repayments you have three choices

a. Part exchange the vehicle

b. Settle the finance

c. Hand the car back to the finance company

7. To keep the vehicle, all payments must have been paid. This includes the optional final payment. Only then you will own the car

Benefits of Personal Contract Purchase

Fixed monthly payments with Personal Contract Purchase mean that you always know what you’re paying and there are no hidden costs that might creep up on you. Additionally, we agree on the minimum future value of the vehicle. Meaning you are protected against any depreciation of the car and any negative equity. Finally, your payment can be settled at any time, should your situation change.


Looking to buy a new car? Head over to our used car search. 

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Transport For London

Cars need to meet minimum emission standards when travelling in the Ultra Low Emission Zone (ULEZ) or the daily charge must be paid.

Minimum emission standards

Petrol: Euro 4
Diesel: Euro 6

The ULEZ will be enforced based on the declared emissions of the vehicle rather than the age. However:

Information from Transport For London

Check this car on the TFL website before purchasing: https://tfl.gov.uk/modes/driving/check-your-vehicle/

Spencers Car Sales

At Spencers Car Sales we charge an admin fee of £50 when you purchase a used vehicle from us. The admin fee pays towards the preparation of your new car, to make sure it’s safe and immaculate when you drive it away.

Admin fee is charged as listed below:

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