Exploring Finance options online can be daunting but we’re here to help you find the right arrangement for you, be it Hire Purchase (HP) , Personal Contract Plan (PCP) or an alternative.
What is Personal Contract Purchase (PCP)?A Personal Contract Purchase is usually broken up into 3 sections. The first is a deposit. This is then followed by a series of fixed monthly instalments before you have the option to make a final payment (sometimes called a balloon payment) at the end in order to keep the vehicle. Consumers have the choice of returning the car, paying the final payment (which is dependent on resale value) or putting that resale value towards a new vehicle.
This option is generally better for people who like to change their car regularly.
This option is generally better for somebody who wants to own the vehicle at the end of the agreement and can afford to pay more per month. If you don't have a high credit score, a hire purchase agreement may be easier to obtain as the car is used as collateral for the loan.