Personal Contract Purchase (PCP) is one of our most popular finance products, and is ideal for those who want a flexible contract that gives you the option of buying your vehicle or upgrading every few years. Instead of paying off the entire value of the vehicle over the term of the agreement, you will pay off its depreciation value, which is the difference between its sale price and the Guaranteed Future Value that is calculated at the start of the contract.
Once you have chosen your vehicle, you will then agree your annual mileage and decide on the agreement term – typically 18 to 48 months – with one of our Business Managers. We’ll then determine what the car’s Guaranteed Minimum Future Value (GMFV) will be at the end of the agreement, and tailor a package with a deposit and fixed monthly amount that suits your budget.
At the end of your agreement you have three options: Return the car to us, trade it in for another vehicle of your choice, or pay the optional final payment to own the car outright.
For a quotation, help or advice, contact one of our Business Managers today.
Yes, it’s possible to settle your agreement early. Simply ask your finance provider for a settlement figure. It’s worth noting that you will have to pay off the difference between what your car is worth and what you still owe, and this could result in negative equity. If, however, your car is worth more at the end of your term than the Guaranteed Future Value, you will have some positive equity to contribute towards your next vehicle.
Hire Purchase is a straightforward way to finance a new or used car, and is ideal for those who want to own their vehicle outright. After paying an initial deposit – usually around 10% of the vehicle’s value, the balance is paid off in fixed monthly instalments over a period of 12-60 months. At the end of the agreement, you pay an ‘option to purchase’ fee, normally of £100-200, which makes you the car’s owner.
To obtain a quotation, or for help and advice, contact one of our Business Managers today.
Yes – simply request the settlement figure from your finance provider. Most offer the option to end the agreement early once you have got two-thirds of the way through it. You’ll pay a settlement fee, which covers the cost of any remaining unpaid instalments and interest payments. Once this is paid, you’ll take full ownership of the car early.