Hire Purchase (HP)
How it works
You pay a deposit upfront and monthly payments over an agreed term. At the end of your agreement, the car is yours, clear and simple.
This is a form of Hire Purchase (HP).
Why it might be right for you
- There are fixed, regular payments – which makes it easier to budget
- You own the car outright at the end of the agreement
Why it might not be right for you
- The vehicle is not yours until the final payment is made
- The vehicle may be repossessed if you don’t maintain payments
- You must have fully comprehensive insurance cover
Personal Contract Plan (PCP)
How it works
You pay a deposit upfront and lower monthly payments over an agreed term leaving a large final cost amount at the end of the PCP contract called the Guaranteed Minimum Future Value (GMFV). The GMFV is based on an agreed mileage limit during the PCP contract. At the end of your agreement, you decide whether to keep the car and pay off the GMFV amount, return the vehicle or exchange it for a new car and enter into a new PCP contract.
This is a form of Personal Contract Purchase (PCP).
Why it might be right for you
- Monthly payments tend to be lower – which makes it easier to budget
- You are protected from any fall in used vehicle values under the Goods Return option (If you hand the vehicle back)
Why it might not be right for you
- Monthly payments are kept low by deferring a significant proportion of the credit until the final payment. In other words, you’ll have a lump sum to pay at the end if you want to own the vehicle
- The vehicle is not yours until the final payment is made
- The vehicle may be repossessed if you don’t maintain payments
- You must have fully comprehensive insurance cover
TERMS AND CONDITIONS APPLY
An accurate quotation can only be given following a full application for finance being completed via the dealer. Terms and conditions apply.