PCP Car Finance

If you’re looking for a car finance option at a lower fixed monthly rate than a traditional Hire Purchase, then a Personal Contract Purchase (PCP) could be exactly what you are looking for. PCP is one of the most popular and effective car finance products on the market – especially for clients looking to switch up their car on a regular basis.

PCP is often built upon a Hire Purchase agreement, which lets you pay for your luxury vehicle over a set period of time – usually 2 – 5 years. Starting with a flexible deposit of 0% (lender dependent) to 20%, a fixed monthly payment is delivered over the course of a fixed term such as 36 to 48 months. At the end of this term, you’ll have three options: return the car with nothing further to pay (should the car be in good condition, as you could be responsible for any repairs), pay off the outstanding Guaranteed Minimum Future Value (GMFV) and keep the vehicle, or part exchange to use any outstanding equity against your next car. But it is also important to note that, with a PCP agreement, monthly payments are based on the amount you plan to borrow minus the cost of the GMFV.

Hire Purchase Car Finance

Hire Purchase agreement gives you the power to pay off your prestige vehicle over a fixed period without using a personal loan – with the vehicle being yours once that final monthly payment has been made. This is a fantastic solution for those looking to keep the keys to their dream car at the end of the agreement. This is the more expensive root however, you will own the car at the end of your agreement.

With this type of finance clients are essentially hiring their luxury car from us during the 2-5 years that the agreement is in motion, which is why it is sometimes known as a Lease Purchase. From a flexible 10%-40% deposit taken at the start of your plan with a custom agreement length based around your current financial circumstances.