FAQs

Got Questions? We’ve got answers. Whether you’re buying your first car or trading in your old car, we’re here to make it simple. Explore our FAQs for quick, honest answers about Carsa’s process, prep, finance, handover, and more.

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What’s the difference between PCP & HP finance?

PCP usually offers lower monthly payments and greater flexibility if you like to change cars every few years. However, you’ll need to pay a balloon payment if you want to own the car outright. HP has higher monthly payments, but once the final payment is made, the car is automatically yours.

Finance
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What is Personal Contract Purchase (PCP) finance?

PCP is a more flexible type of finance where part of the cost is deferred into a final “balloon payment” (known as the Guaranteed Future Value). At the end of the agreement, you can choose to:

  • Pay the balloon payment to own the car.
  • Hand the car back, as long as it’s in good condition and within mileage limits.
  • Trade it in for another car, using any value left over as your deposit.

To see how this looks in practice, find a car on our website and use the finance calculator — you can adjust the deposit, term, and mileage to see how payments change.

If you want to see if you might be eligible for PCP, you can check your eligibility with our finance eligibility checker.

Finance
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What is Hire Purchase (HP) finance?

HP is a simple and straightforward type of finance. You pay a deposit, then fixed monthly instalments over an agreed term. Once all payments (and any small option-to-purchase fee) have been made, the car is yours. HP is a good option if you know you want to own the car outright at the end of the agreement.

If you want to see if you might be eligible for HP, you can check your eligibility with our finance eligibility checker.

Finance
what-is-hire-purchase-hp-finance
Can I get two cars on finance?

Yes, some customers are able to take finance on more than one vehicle, as long as their credit profile and affordability are strong enough. Lenders may ask for extra documents or a clear reason for needing a second car.

Finance
can-i-get-two-cars-on-finance
Can I get finance with no UK credit history?

Yes, some specialist lenders will consider customers with no UK credit history, although they may ask for additional documents. These can include proof of your right to remain in the UK, two proofs of address, and an international driving licence. 

If you’re unsure, check your eligibility with our finance tool — it’s a simple way to see whether you’re likely to be eligible for car finance

Finance
can-i-get-finance-with-no-uk-credit-history
Can I get finance if I have negative equity or an existing car on finance?

It can be possible. Some lenders will work with customers who have existing finance or a small amount of negative equity (where the car is worth less than the outstanding balance). For example, if you part-exchange your car, the existing finance can sometimes be settled as part of the new deal.

To understand how much negative equity you have, you can get a part exchange quote on our website by following this link or by calling us up and speaking to an agent.

Finance
can-i-get-finance-if-i-have-negative-equity-or-an-existing-car-on-finance
Can I get car finance without a balloon payment?

Yes. If you’d prefer not to have a balloon (final) payment, a Hire Purchase (HP) agreement might be more suitable. With HP, you make fixed monthly payments until the balance is cleared, and once the final payment is made (plus any small option-to-purchase fee), the car is yours outright.

Finance
can-i-get-car-finance-without-a-balloon-payment
Are PCP and HP eligibility criteria different?

Yes, they can be. PCP (Personal Contract Purchase) sometimes has stricter criteria, because it involves a larger deferred payment (the optional final payment). HP (Hire Purchase) tends to be more straightforward, as you’re paying the full balance of the car over the term. Ultimately, it depends on the individual lender’s requirements.

Finance
are-pcp-and-hp-eligibility-criteria-different
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What’s the difference between PCP & HP finance?

PCP usually offers lower monthly payments and greater flexibility if you like to change cars every few years. However, you’ll need to pay a balloon payment if you want to own the car outright. HP has higher monthly payments, but once the final payment is made, the car is automatically yours.

What is Personal Contract Purchase (PCP) finance?

PCP is a more flexible type of finance where part of the cost is deferred into a final “balloon payment” (known as the Guaranteed Future Value). At the end of the agreement, you can choose to:

  • Pay the balloon payment to own the car.
  • Hand the car back, as long as it’s in good condition and within mileage limits.
  • Trade it in for another car, using any value left over as your deposit.

To see how this looks in practice, find a car on our website and use the finance calculator — you can adjust the deposit, term, and mileage to see how payments change.

If you want to see if you might be eligible for PCP, you can check your eligibility with our finance eligibility checker.

What is Hire Purchase (HP) finance?

HP is a simple and straightforward type of finance. You pay a deposit, then fixed monthly instalments over an agreed term. Once all payments (and any small option-to-purchase fee) have been made, the car is yours. HP is a good option if you know you want to own the car outright at the end of the agreement.

If you want to see if you might be eligible for HP, you can check your eligibility with our finance eligibility checker.

Can I get two cars on finance?

Yes, some customers are able to take finance on more than one vehicle, as long as their credit profile and affordability are strong enough. Lenders may ask for extra documents or a clear reason for needing a second car.

Can I get finance with no UK credit history?

Yes, some specialist lenders will consider customers with no UK credit history, although they may ask for additional documents. These can include proof of your right to remain in the UK, two proofs of address, and an international driving licence. 

If you’re unsure, check your eligibility with our finance tool — it’s a simple way to see whether you’re likely to be eligible for car finance

Can I get finance if I have negative equity or an existing car on finance?

It can be possible. Some lenders will work with customers who have existing finance or a small amount of negative equity (where the car is worth less than the outstanding balance). For example, if you part-exchange your car, the existing finance can sometimes be settled as part of the new deal.

To understand how much negative equity you have, you can get a part exchange quote on our website by following this link or by calling us up and speaking to an agent.

Can I get car finance without a balloon payment?

Yes. If you’d prefer not to have a balloon (final) payment, a Hire Purchase (HP) agreement might be more suitable. With HP, you make fixed monthly payments until the balance is cleared, and once the final payment is made (plus any small option-to-purchase fee), the car is yours outright.

Are PCP and HP eligibility criteria different?

Yes, they can be. PCP (Personal Contract Purchase) sometimes has stricter criteria, because it involves a larger deferred payment (the optional final payment). HP (Hire Purchase) tends to be more straightforward, as you’re paying the full balance of the car over the term. Ultimately, it depends on the individual lender’s requirements.

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