The freedom to choose the right car finance for you

If you’re unable to buy a car outright, there are a few different finance options you can choose from. This could be a TSB car loan, or a choice of other car finance through our partner Aro, such as: Personal Contract Purchase and Hire Purchase. We have a handy guide that explains the differences between a car loan and car finance.

Below, we run through each of the Aro options so you can find the one that’s right for you.

For both financial options (Personal Contract Purchase and Hire Purchase) they’re secured against the value of the car. So, if you stop making the repayments you could lose your car.

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Personal Contract Purchase

If you like the idea of changing your car every few years more than owning it outright, then a Personal Contract Purchase (PCP) could be right for you. The monthly repayments are lower because you're covering the predicted depreciation plus interest, not the entire cost of the car.

At the end of the agreement, there’ll still be a large amount owing on the car. You can choose to keep the car (after a final ‘balloon’ payment), or simply give it back or part exchange it for a new car.

Borrow from £10,000 to £35,000
Spread the cost over 3 to 5 years
Hand the car back, or make a final balloon payment to own it

Hire Purchase

Hire Purchase is essentially when you own the car after the final payment. There’s usually an upfront deposit to pay, then you pay for the car in regular monthly instalments, plus interest. The deposit and monthly repayments cover the entire cost of the car. So they tend to be higher, but at the end of the agreement, the car is yours.

Borrow from £1,000 to £200,000
Spread the cost over 1 to 6 years
Own your car after the final payment

Why Aro?

With Aro, the search for car finance is made simple. You can compare car finance from a panel of lenders selected by Aro. This gives you more choice so you know you’re getting the right option for you, and you’ll get a quick online decision. There are no complicated forms or confusing jargon, just an easy way to find finance.

Aro can check your eligibility for both Personal Contract Purchase and Hire Purchase agreements. If you’re eligible for both, you’ll see both options alongside each other in your search results. And it’s good to know that checking your eligibility with Aro won’t harm your credit score when you get a quote.

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Aro are proud to be rated ‘Excellent’ on Trustpilot.

Important information

For both financial options (Personal Contract Purchase and Hire Purchase) they’re secured against the value of the car. So, if you stop making the repayments you could lose your car.

You need to be 18+ and a UK resident.

TSB will earn commission if you secure lending through Aro.

TSB acts as an introducer for the motor finance products (HP and PCP) of Aro. Neither TSB or Aro give you any advice or recommendations about these products - it's up to you to decide whether the product is right for you. You should seek financial advice if you are unsure about what product is best for you.

TSB will not share any of your personal information with Aro. View TSB’s Data Privacy Note.

If you click through to Aro, you will be leaving TSB and entering their website which is subject to their own Data Privacy Notice.

Lenders accessible on Aro's site, interest rates are typically from 6.40% APR to 49.90% APR. Aro is a credit broker, not a lender.