Both HP and PCP allow you to pay for your car in monthly payments over an agreed period, with a fixed rate of interest. The key difference is what happens at the end of each contract.

With a HP contract, you'll own the car after making the final payment.

At the end of a PCP contract, you can either hand the car back to the lender, part exchange it for a new one, or pay the final repayment (including any purchase fee) to keep the car. New finance agreements are subject to status and affordability checks. If you hand the car back at the end of a PCP agreement, there may be extra charges if you go over the agreed annual mileage or if the car has damage over fair wear and tear.

The lump-sum is a one-off optional payment due at the end of your (PCP) finance term, if you decide to keep the car.

This is normally referred to as the Guaranteed Future Value (GFV) and is an estimated value of how much the car will be worth at the end of a finance agreement (based on your expected mileage and agreement term). The GFV is not applicable if you intend to hand the car back at the end of the agreement as part of the goods return option.

There's no lump sum payment on the (HP) finance option, which is why monthly payments are usually higher than with the (PCP) option.

APR stands for Annual Percentage Rate and is the amount of interest on your total borrowed amount that you'll pay annually (averaged over the full term of the loan). APR's are typically used when comparing finance options to understand which would be the cheapest option overall.

Yes, you can. Whether you have a HP or PCP agreement, you have the right to end your agreement at any time by paying off the remaining balance in full.

You also have the right to voluntary terminate your agreement. You will need to return the car and half of the total amount payable as detailed on your agreement documentation. If you have already paid at least this amount plus any overdue repayments and have taken reasonable care of the car, you will not have to pay any more.

If you want to pay off your HP agreement early, you'll own the car outright but may need to pay an early settlement fee.

For a PCP agreement, the car's mileage and condition will need to be line with your terms and conditions.

Potential fees at the end of your agreement

• £10 Purchase fee- This is optional, but you must pay it if you want to become the owner of the vehicle. It is included in the Final Repayment.
• Excess mileage fees - Applicable on PCP only if you choose to return the vehicle at the end of your agreement instead of paying the final lump sum. If you have exceeded the agreed mileage allowance, you will need to pay an excess mileage charge. You can avoid this by agreeing a realistic mileage at the outset.
• The vehicle must be in good condition, you will be charged for any repairs outside the acceptable fair wear and tear if this is not the case. You can avoid these charges by taking good care of the vehicle.

During your application, we'll need your personal details, employment details, address history, bank account details.

When you apply for finance, there will be a check on your credit profile, and we need your personal details to do this.

Your finance offer is valid for xx days/hours. You'll need to pay your deposit within this time, otherwise the car you've chosen may go back up for sale on our website.

When you apply for finance, a lender will run a ‘hard credit check’ which leaves a mark on your credit report. Too many hard credit checks over a short period can affect your credit score for six months, which could reduce your ability to get approved for credit.

We’ll give you an instant finance decision wherever possible, but sometimes it may take longer. We’ll keep you updated on your application’s progress.

Please speak to your Retailer stating your order/reference number as soon as possible. If there is a problem with your vehicle, they will do their best to help you resolve the problem fully. You do have the right to cancel your purchase and return the vehicle within 14 days if you feel that the issue can’t be fixed or resolved. Your cancellation rights are detailed in your retailers’ terms and conditions.

It is important that you consider the monthly payments before committing to purchasing the vehicle.

There are serious consequences if you do not then some or all of the following may arise:

• Additional costs - you may incur additional costs and interest charges
• Credit rating - this may be reduced, making it more difficult or expensive for you to obtain credit in the future
• Recovery - the finance company will take steps to recover any money owed to them which may include a debt collection or similar agency. They may also take legal action to recover the vehicle and in some circumstances take further legal action to recover sums remaining due which may include applying for a court order for the sale of your home.

You do not have to wait until the end of your finance contract before you sell the car - you can do this at any time. All you need to do is contact your finance company and they will let you know what the current balance owing on your finance agreement is and how long this amount is valid for. In all instances you will have to pay off this outstanding amount, but if you are swapping your vehicle in with a Jaguar Retailer, they may do this on your behalf - but remember this payment will be accounted for within your purchase of a vehicle.

If you are looking to buy a new Jaguar vehicle and have a question about vehicle finance, then please to one of our Retailers. To find your nearest Retailer click here. If your question is in relation to an existing finance agreement, then you should first call your finance company. If you still have query, email us at [email protected] or call us during normal office hours (Monday - Friday, 9am-3:30pm excluding Public Holidays) on our local rate number 01926 691736 but please be aware that we are unable to offer you advice.

Credit is subject to status and approval and is only available to UK residents aged 18 and over. Credit is provided by Jaguar Financial Services, a trading style of Black Horse Ltd, St William House, Tresillian Terrace, Cardiff, CF10 5BH. Black Horse Ltd is authorised and regulated by the Financial Conduct Authority.

Registered Number: 661204 England and Wales.