The Complete Guide to Getting a Car on Finance

The Complete Guide To Getting A Car On Finance

These days, subscribing to a service and paying monthly for it is the norm. Look at Netflix and Spotify! But when it comes to the bigger ticket items, like your vehicle, it can still feel a little confusing as there are so many ways to finance your car.

If you want to drive a brand new car every few years, for a small monthly fee, that’s where leasing comes in. Leasing is essentially getting a car on finance and paying that money back in monthly instalments. And you could get a lot more car for your money than if you choose to buy.

Here’s our guide to getting a car on finance, how car finance works and how to get started…

How To Get A New Car On Finance

Firstly, there are a few different ways to get your car on finance. We’ll talk about the most common 3. Personal Contract Hire, Hire Purchase and Personal Contract Purchase. You’ll need to choose which of these best suits you before you get your new car.


Personal Contract Hire is just another way of saying leasing. This is what we always recommend if you want a new car every few years and to make low monthly payments.

With Personal Contract Hire, a finance company will technically buy the car you want from the manufacturer or dealer and then you take out a finance agreement with them for a set period – usually 2,3 or 5 years. You then pay low monthly installments to the finance company for the length of your agreed lease. At the end of your lease you give the car back to the finance company. Simple.

Hire Purchase

Hire purchase is slightly different to leasing in that you’re getting finance to buy the car, rather than just to drive it. This means your monthly payments are likely to be a bit higher.

You get your finance from the finance company and then pay monthly payments to pay off the car. At the end of your term, you then pay another fee to own the car.

We don't offer HP at


Personal Contract Purchase is also a way to buy the car. You take out a loan, or finance, from a finance company and pay it back in monthly installments.

The difference between this and PCH is that you’re paying monthly to eventually own the car and will usually pay a higher deposit, higher monthly payments and a balloon payment at the end of the lease.

That's why we don't offer PCP at

How Is A Lease Car Funded?

Let’s explain how finance on a lease works. Whether you’re going for PCH, PCP or HP, you’ll need finance.

If you decide to take finance, you can borrow from your bank, a finance company or even a credit union. Taking finance is basically taking a loan which you will need to pay back over a period of time, usually with interest. This loan is then used to pay for the car you want.

At Mororama, we’re a broker so we work with a range of finance companies and can make all the arrangements for you to not only find the best finance deal but also the best deal on a brand new car.

Will I Get Finance?

As with any loan or finance product, there are a few conditions you will need to meet before you can get it.

  • You’ll need to be over 21 years of age.
  • You’ll need a full uk driving license.
  • You’ll need at least s years of address history
  • You’ll need at least 3 years of employment history
  • You’ll need to have a good credit rating.

If you meet all these conditions, it’s simple. Just choose your car with at and we’ll contact the finance company on your behalf to secure your lease.