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Choosing between PCP, HP, and leasing? Each has unique pros and cons.

Hire Purchase (HP)

• Higher monthly payments.
• You own the car at the end.
• No mileage limits.

Personal Contract Purchase (PCP)

• Lower monthly cost.
• Balloon payment if you keep the car.
• Flexible: return, upgrade, or keep.

Leasing (PCH)

• Lowest monthly payments.
• You never own the car.
• Return-only, mileage/condition charges apply.

FCA rules require lenders to display representative APR and total amount payable so you can compare fairly.

If you’ve been refused car finance before, don’t worry bad credit car finance in the UK is possible. Many FCA-regulated lenders specialise in helping customers with CCJs, defaults, or missed payments. Here’s how to boost your approval odds.

1. Use a Soft Credit Check

See if you’re eligible without affecting your score.

2. Be Accurate With Details

Mismatched information can flag applications.

3. Show Income Stability

Bank statements and open banking help prove affordability.

4. Lower Current Debt

Even small repayments improve your profile.

5. Save a Small Deposit

Reduces lender risk and monthly cost.

6. Consider Hire Purchase (HP)

HP approvals are often easier than PCP.

7. Apply via FCA-Approved Brokers

Guarantees fairness, transparency, and no hidden fees.

No deposit car finance lets you drive away without upfront cash.

Pros

• £0 to start.
• Works for HP and PCP.
• Perfect for new drivers or those without savings.

Cons

• Higher monthly repayments.
• More total interest.
• Limited availability for bad credit.

FCA protections ensure all deals are explained with clear representative examples so you know the true cost before signing.

Being self-employed doesn’t mean rejection. Lenders now use open banking and bank statements to judge affordability.

What Lenders Look At

• Income consistency (tax returns, bank statements).
• Real-time spending habits.
• Vehicle type and purpose (business or personal).

Tips to Improve Approval

• Keep financial records accurate.
• Declare all income sources.
• Apply through FCA-compliant brokers.