Car finance in 2026

With the new March 2026 registration plates approaching, many drivers are considering upgrading their vehicle. Whether you’re looking at a brand new model, or a used car, deciding how to pay for it can be the hardest part.

In 2026, the most common finance options are Personal Contract Purchase (PCP), car leasing, and personal loans. Each works differently and suits different needs, budgets, and driving habits.

Here’s a simple breakdown of how they compare, helping you choose the option that’s right for you.

At a glance comparison

Please keep in mind that this provides an overview of the differences between financing options; it may not be accurate for every single agreement.

Which option is right for you?

There’s no single “best” option- only the best fit for your needs:

• PCP is often the best choice if you want lower monthly payments and like changing your car regularly.
• Leasing suits drivers who want a new car often, prefer predictable costs, and aren’t concerned about ownership.
• A personal loan is ideal if you want full ownership, flexibility, and long term control of your vehicle.

When comparing offers, don’t focus solely on the monthly payment. Be sure to consider:

• Upfront deposits
• Mileage allowances
• End of term costs
• The total amount payable over the full agreement

These factors can significantly affect the true cost of your car.