بِسْمِ ٱللَّٰهِ ٱلرَّحْمَٰنِ ٱلرَّحِيمِ

Insights, guides & industry updates.

Helpful articles and expert insights to help you make informed decisions about halal vehicle finance, ownership. and the ahead.

Introducing Halal Auto
Finance

Coming Soon

ALL CREDIT SCORES CONSIDERED

Introducing Halal Auto Finance

Coming Soon!

Frequently Asked Questions

Which Is Better, PCP, HP or a Personal Loan?

PCP may suit drivers who want lower monthly payments and plan to change cars regularly. HP offers a clearer route to ownership, while a personal loan usually gives immediate ownership and greater flexibility. The best option depends on total cost, mileage, credit profile and how long you plan to keep the car.

Is PCP or HP Cheaper Overall?

PCP often has lower monthly payments because part of the vehicle’s value remains in the final balloon payment. HP usually costs more each month but normally leads to ownership without a large final payment. Compare the APR, deposit, fees and total amount payable before deciding which option is cheaper.

Do You Own the Car with PCP Finance?

You do not normally own a car during the main PCP agreement because the finance provider remains the legal owner. You can usually purchase the vehicle by paying the optional final balloon payment at the end. Alternatively, you may return the car or use any available equity towards another vehicle.

Is a Personal Loan Better Than Car Finance?

A personal loan may be suitable if you receive a competitive interest rate and want to own the car immediately. It can also allow you to buy from a private seller and avoid PCP mileage or condition restrictions. However, the loan must still be repaid even if you later sell the vehicle.

Can You Pay PCP or HP Finance Off Early?

You can normally ask the finance provider for an early-settlement figure at any point during the agreement. This figure shows how much you must pay to clear the outstanding finance. Compare it with the car’s market value and request all settlement terms in writing before proceeding.

Which Car Finance Option Is Best for High-Mileage Drivers?

HP or a personal loan may be more practical for high-mileage drivers because PCP commonly includes an agreed mileage allowance. A PCP agreement can still work if the correct annual mileage is selected at the beginning. Remember that high mileage reduces the vehicle’s resale value under every finance option.

Are PCP, HP and Personal Loans Halal?

The product name alone does not determine whether a finance agreement is halal. Muslim buyers should check whether interest is charged, who owns the vehicle and how the provider earns its return. Agreement-specific guidance from a qualified Sharia adviser may be necessary before signing.

Ready to get your first car?

Document

SAF Approved

About us

We pride ourselves on helping as many people as possible drive away in the car they want, without compromise. We understand that every car buyer has a different set of circumstances, so we work tirelessly to ensure we find the right car finance deal for you. Get your personalised quote today.

Get your quote here

Quick links

Contact info

CarFinanced is a trading name of CarFinanced Limited. Registered address: The Charter Building, Charter Place, Uxbridge, UB8 1JG, England. Company number: 13109658.

VAT reg number: GB479628529. Information Commissioners Office (ICO) under registration number: ZA847951.

CarFinanced Ltd t/a CarFinanced is authorised and regulated by the Financial Conduct Authority under reference number 1014460.

We look to find the best rate from our panel of lenders and will offer you the best deal that you’re eligible for. Depending on the supply route of your vehicle, we may charge a separate administration fee of £299. We will receive a commission from our panel of lenders when a finance agreement is successfully arranged. This commission may be a fixed fee or a fixed percentage of the amount borrowed, this does not influence the interest rate you’re offered in any way. All finance is subject to status and income. Applicants must be 18 or over.