We offer two types of car finance – Personal Contract Purchase (PCP) and Hire Purchase (HP).
All finance applications need to be completed through our website to make sure they’re linked to the car you’re buying. We don’t accept outside lenders.
How does Personal Contract Purchase (PCP) work?
- With PCP, you make an initial deposit (usually around 10% of the car’s value) and then spread the cost of your car’s depreciation over monthly payments for an agreed term.
- At the end of your term, you can make an optional ‘balloon payment’ if you want to take ownership of the car – the amount being what your lender predicted your car would be worth at the end of your PCP deal.
- If you don’t want to keep the car, you can give it back to your lender and end your contract (subject to mileage and condition terms).
- Your car’s ‘depreciation’ (i.e. what your monthly payments cover) is the difference between what your car’s worth when you buy it and what your lender expects it to be worth at the end of your contract (also called the ‘Residual Value’ or ‘Guaranteed Minimum Future Value’).
Find out more about Personal Contract Purchase (PCP)
How does Hire Purchase (HP) work?
- With HP, you make a deposit and spread the full cost across monthly payments for an agreed term until you fully own the car.
- There’s no larger ‘balloon payment’ at the end because you’ve spread the cost of the whole car, not just the ‘depreciation’, across your deal.
- You might need to make a small option to purchase payment, but this will be explained in your contract.
Find out more about Hire Purchase (HP)