Understanding your car finance options

General information only. Last reviewed: July 2026.

This guide is designed to help you understand common finance terms. It is not personal financial advice. Finance is subject to status, affordability and lender criteria.

It starts with how you want to own the car

There are three common ways to fund a car, and the route that may suit you depends on what you want during and at the end of the agreement. Here is the short version.

• PCP: lower monthly payments than equivalent HP, with an optional final payment deferred to the end. At the end you can buy the car, hand it back subject to agreement terms, or put any equity towards your next one.
• Hire Purchase: fixed payments over a fixed term, with ownership transferring after the final payment and any option to purchase fee. No mileage limits and no final balloon payment.
• Finance Lease: fixed, predictable rentals that can help keep cash in the business, with VAT and tax treatment depending on status, vehicle use and business circumstances.

Not sure how the options compare? Read more about each finance option or make an enquiry if you would like Fynex to explain the routes available for a specific car and budget.

Our simple step by step process

The exact process depends on the lender and product, but a typical journey looks like this.

1. Enquiry. Contact our specialists and discuss exactly what you’d like to finance.
2. Application. If you decide to proceed, we submit your application to suitable lenders from our selected panel.
3. Decision. If a lender approves the application, the lender issues a finance agreement for you to review before signing. Fynex can help explain key points in the process.
4. Payment. Once the signed agreement and required checks are complete, we coordinate with the lender and dealer so the lender can release funds and you can collect the car.

Still not sure? That’s our job

You do not need to have everything figured out before you make an enquiry. A Fynex specialist can look at the car, the budget and your circumstances, then explain suitable routes from selected lenders. An initial enquiry does not involve a hard credit search. A formal application may involve a hard credit search, which will be explained before that stage.