Car finance. Let’s get you from A to B

  • Compare car loans, HP and PCP
  • Checking your eligibility won’t affect your credit score
  • Aro is a credit broker, not a lender

Compare your car finance options, all in one place

Want to compare car loan, hire purchase and personal contract purchase offers side-by-side? Well then, you’re in the right place. At Aro, you can view multiple car finance possibilities from one simple search. Ready to get started?

Our Lenders

Let us help you narrow it down

Too much choice? Our data-driven eligibility check will match you with car finance options that fit your needs, so you can easily decide on the best way to finance your car.

Personal loans

Personal car loans

Own your car outright, right from the off. With a personal car loan, you can borrow up to £35,000 to pay for your new or second-hand car.

  • Borrow up to £35,000
  • Spread the cost over 1 to 7 years
  • Own your car as soon as you buy it
Hire purchase

Hire purchase

Spread the value of a car into more manageable monthly payments. With a hire purchase agreement (HP), the finance is secured against the car. This means that you won’t officially own your car until the last payment is made. At the end of the contract, you usually have the option to keep the car or hand it back to the dealership.

  • Borrow up to £200,000
  • Spread the cost over 1 to 6 years
  • Own the car after your last payment
Personal contract purchase

Personal contract purchase

Similar to hire purchase, but with a small difference. Instead of spreading the cost of the car’s full value, with personal contract purchase (PCP) the car’s depreciation in value over time is factored in. This means that your monthly repayments could be lower, however if you want to keep your car at the end of your contract, you’ll need to make a final, larger balloon payment.

  • Borrow from £10,000 to £35,000
  • Spread the cost over 3 to 5 years
  • Own the car after the balloon payment

Still have questions?

What is a personal car loan?

A personal car loan is an unsecured loan which you can use to purchase a new or used car. With a personal loan, you borrow a fixed amount off a lender, then pay it back in monthly instalments plus interest over the loan term.

What is hire purchase?

With a hire purchase agreement (HP), the finance is secured against the value of the car. This means you won’t officially own the car until your last payment has been made. You’ll need to buy your car from a dealership that’s been approved by your chosen lender, then you’ll pay for your car in monthly instalments plus interest over the agreement term. Some lenders will need you to pay an initial deposit at the start of your agreement.

How much can I borrow?

Good question. Essentially, this all comes down to you and your situation. If you have a lower credit score or are already responsible for a number of credit repayments, you might find that the maximum amount you’re eligible to borrow is a bit less.

That said, typically personal loans range from £500 to £35,000 over terms of 1 to 7 years. If you’re a homeowner, you could also think about a homeowner loan. Homeowner loans tend to range from £5,000 to £500,000+ over terms of 1 to 30 years.

Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

For credit cards, all cards come with a minimum and maximum credit limit. The credit limit you’re offered will depend on your personal circumstances. If you’re not offered the maximum credit limit straight away, your credit card provider could increase your credit limit in the future.

If you’re searching for car finance, Aro can help you compare both hire purchase (HP) and personal contract purchase (PCP) agreements. Our car finance options could help you borrow up to £200,000 over terms of 1 to 6 years.

Which types of car finance can I check my eligibility for?

Here at Freedom, you can do a car finance eligibility check for both personal car loans and hire purchase agreements. If you’re eligible for both, you’ll see both options alongside each other in your search results. Moreover, checking your eligibility with us won’t harm your credit score.

What’s the difference between a personal car loan and hire purchase?

There are a few key differences between personal car loans vs hire purchase (HP) agreements:

So here’s a point by point breakdown.

  • You can borrow more with HP – up to £200,000;
  • HP agreements place the burden of security against your car, whereas a personal loan is not;
  • With a personal loan, you’ll always own your car from the point of purchase. But with HP agreement, you’ll own your car once you make the last payment;
  • You might need a deposit with for HP, you won’t with a personal loan;
  • You have more flexibility on where you can buy your car from with a personal loan;
  • There may be mileage restrictions with HP while you pay off your finance.

Warning: Late repayment can cause you serious money problems. For help go to moneyhelper.org.uk.

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