PCP is a popular way to get behind the wheel of a new car with lower monthly payments. You pay a deposit, then monthly instalments, and at the end you decide what comes next. Your payments cover the car’s depreciation rather than its full value, which keeps them affordable.

Your plan has three parts: an initial deposit, fixed monthly payments for 2 to 4 years, and a final optional balloon payment. When the agreement ends, you can pay the balloon to keep the car, hand it back, or put any equity towards a new JAECOO.

Pros

• Lower monthly payments
• Three flexible options at the end
• Often includes dealer offers such as 0% finance
• Predictable fixed costs

Cons

• Mileage limits with excess charges
• You do not own the car during the term
• Costs for excessive wear may apply
• Servicing must be completed at approved dealers

PCP suits drivers who want lower payments and freedom of choice at the end. It is ideal if you like changing your car every few years or prefer flexibility with predictable monthly costs.

PCH allows you to lease a car for a set period and then return it when the agreement ends. There is no option to buy the vehicle, which makes it popular for businesses and private drivers who simply want a straightforward lease.

You make an initial payment equal to 3 to 12 monthly instalments, then continue with fixed monthly payments for 24, 36 or 48 months. At the end, you hand the car back in good condition with the required documents. Credit checks are usually less strict than with other finance options.

Pros

• Lowest monthly payments available
• No risk of depreciation
• Servicing may be included
• Simple and straightforward

Cons

• No option to buy
• Strict rules on mileage and condition
• Usually only for new cars
• Costly to end the agreement early

PCH is a good fit if you want the lowest monthly payments and enjoy upgrading to new models regularly. It works well if you are comfortable returning the car and want a simple, predictable cost.

Hire Purchase is an easy way to buy a car through monthly instalments. You pay a deposit, spread the remaining cost over 12 to 48 months, then pay a small final fee (often £10). Once the last payment is made, the car is yours.

After your deposit, your monthly payments cover the full value of the car plus interest over your chosen term. Unlike PCP, there is no balloon payment at the end. Once the final instalment and option fee are made, the car is legally yours.

Pros

• You own the car at the end
• No mileage restrictions
• Available on both new and used cars
• No large final payment

Cons

• Higher monthly payments than leasing
• Higher total interest costs
• Not suitable if you do not plan to keep the car
• Larger deposits often required

HP works well if you want to own your car outright and prefer steady repayments without a large final sum. It is a strong option for high mileage drivers or anyone buying used vehicles who plans to keep the car long term.

Conditional Sale is a finance plan designed for buying cars. The finance company pays for the car, and you repay the full value plus interest in monthly instalments. At the end, the car is automatically yours with no extra fees.

You pay a deposit, then monthly instalments covering the full value and interest over your chosen term. There is no balloon payment at the end, and from the start you are committed to ownership. The deposit and length of term can be tailored to suit you.

Pros

• No final fees at the end
• Flexible deposit and term options
• No mileage or condition rules
• Ownership guaranteed

Cons

• Higher monthly payments than leasing
• Cannot modify the car until it is fully paid
• No option to return the car

Conditional Sale is ideal if you want guaranteed ownership with no surprises at the end. It is suited to drivers who want flexibility with deposits and contract lengths, while knowing the car will be theirs once payments are complete.