Personal Contract Purchase is a new alternative to hire purchase loans.
The car is leased by the individual from the dealer after paying an initial deposit.
Unlike Hire Purchase the cost of the car is not spread over the loan period.
This means that the monthly payments are lower, but the vehicle is not paid for at the end of the loan period.
At the end of the payment period you can pay a balloon payment to keep the car, return the car to the dealer or part exchange for another car.