Car Finance Information

Personal Contract Purchase (PCP)

One option that may be right for you is the Personal Contract Purchase (or PCP). Under this plan your car purchase is supported by one of our approved finance providers. Thereafter, it is your responsibility to make the monthly payments for the duration of the agreement. A portion of your car's value is deferred until the end of the agreement. This is called the Guaranteed Future Value. This is the minimum value that we can guarantee your vehicle will be worth. At the end of your agreement period, you have three options:

Part-exchange the vehicle for a new car
Pay the optional final payment and keep the car
Return your car with no further payments (subject to terms and conditions)

Hire Purchase (HP)

HP contracts are generally simple, can be arranged quickly and are available in most car dealerships.

Unlike PCP or PCH you can opt to buy your car through hire purchase (HP), at the end of the agreement the car can be yours to fully own upon payment of a final, agreed balance.

After paying an initial deposit, you pay the remainder of the car value in installments, usually over a period of between one and five years. In effect you are hiring the car until you make your final payment after which you will own it.

Personal Contract Hire (PCH)

Personal Contract Hire or PCH is similar to PCP. The main difference is that ownership of the vehicle is not assumed at the end of the agreement period. Instead, the car would be handed back.

However, another vehicle could then be chosen under the same scheme (subject to credit checks).

Personal Loan

There is also the option of a Personal Loan, which is a common way for people to buy a car on finance. Personal loans are available from banks, building societies and finance companies. The duration of the payment of a loan can vary depending on what you agree beforehand with the loan company. Loans from banks for cars are paid off over a number of years, and will have a fixed rate of interest.