What is the difference between finance and leasing?

Leasing is effectively a long term rental, but in some ways is similar to other common types of car finance such as Personal Contract Purchase (PCP) or Hire Purchase (HP). With Leasing (PCH), PCP and HP you make an initial upfront payment at the start, followed by monthly instalments until the end of the term.

However, there are some key differences between the various options which can become significant if your personal circumstances change (such as wishing to leave the agreement early or buy the car outright) and can incur fees.

The table below highlights some of these key differences between the common funding options. Everyone’s personal circumstances are different and therefore it is important to think carefully about which factors are most important to you. You should always discuss your options with your chosen carwow dealer who is FCA regulated and able to offer advice on which option might be best.

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If you have any questions relating to leasing or financing a car through carwow, simply contact your chosen dealership and they will be happy to help.

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