Car Finance Explained: PCP, Hire Purchase, Leasing and Ending a Deal Early

Most new and many used cars in the UK are bought on finance. This course explains how Personal Contract Purchase (PCP), Hire Purchase (HP) and Personal Contract Hire (leasing) work, the true cost of each, your legal right to end a deal early through voluntary termination, what happens if you fall behind, and the FCA’s motor finance compensation scheme.

Tutwoo is an independent learning provider. This course gives general information based on published official guidance for the 2026/27 tax year (6 April 2026 to 5 April 2027). It is not personal financial, tax or legal advice. For help with your own situation, contact HMRC, MoneyHelper, Citizens Advice or a regulated adviser.

© 2026 Tutwoo UK Limited. This course was created in-house by Tutwoo and is our original work. It is for your own learning only: please do not copy, share, record or resell it.