Buying your first car or upgrading to something new? It is super exciting! 🚗
While some people pay outright, most drivers choose to get their car on finance.
There are lots of different car finance options out there, and we know it can be confusing. So, we’ve broken them down to help you find what works best for you.
Personal Contract Purchase (PCP)
Personal Contract Purchase (PCP) is one of the most popular ways to finance a car. It’s flexible and usually comes with lower monthly payments than Hire Purchase (HP).
You don’t pay off the car’s full value, just the depreciation. At the end of your agreement, you’ll have three choices:
- Pay a final ‘balloon’ payment to buy the car outright
- Hand the car back and walk away
- Trade it in for a newer model
Hire Purchase (HP)
Hire Purchase (HP) is one of the simplest types of car finance. You pay fixed monthly instalments over a set period (usually 1–5 years). Once the final payment’s made, you’ll own the car outright, no balloon payment needed.
Leasing / Personal Contract Hire (PCH)
Leasing, or Personal Contract Hire (PCH), is perfect if you want to drive a new car without the commitment of ownership.
You pay an initial deposit followed by monthly rental payments to use the car for a fixed period, usually two to five years. When your contract ends, you simply return the car.
Hire Car / Rental
Need a car for a few days or weeks? That’s where car hire comes in. It’s a short-term rental, with no option to buy the car.
Leasing, on the other hand, is a long-term car finance option – think years, not weeks. So if you’re only after a temporary ride, hire is the way to go.
Alternatively, if your just need a car short-term, you could borrow a car from a friend or family member and get fully comprehensive insurance with us.
Personal Loan
You can also use a personal loan to buy a car. This means borrowing a fixed amount from a bank or lender to purchase the vehicle outright. You’ll own the car from day one and repay the loan in monthly instalments.
It’s a flexible option that gives you full ownership right away.
How Veygo fits in 🚘
At Veygo, we make it easy to get on the road with flexible short-term car insurance that fits around you. Whether you’re learning to drive, just passed your test, or already an experienced driver, we’ve got your back.
A few quick things to know:
❌ We don’t currently cover hire cars or rental vehicles, you’ll need a specialist provider for that.
✅ If your car’s on finance and you’re the registered keeper (your name’s on the logbook), we can cover you.
❌ If the finance company is the registered keeper, we can’t provide cover right now.
And if you’re borrowing a car from a friend or family member, always double-check who the registered keeper is, especially if it’s on finance or a lease. It’s the easiest way to make sure your Veygo policy stays valid.
Not 100% sure? No worries! You can chat to our Veybot for quick help.
Get covered with Veygo
Whether you’ve just bought your first car, picked one up on finance, or borrowed a mate’s, Veygo’s short-term car insurance makes getting on the road simple, flexible and stress-free.
Find out more and get a quote today.