Hire Purchase (HP)

A simple way of financing that gives you the certainty of a fixed interest rate, and fixed monthly payments throughout the agreement. The initial deposit and repayment period can be structured to help meet your budget and the length of time you expect to keep the car. You can trade-in your existing car and put this towards the initial deposit, or if you wish, just put down a cash deposit.

After paying the initial deposit you make regular monthly payments to cover the amount borrowed plus any interest and fees   

The interest rate is fixed which means you'll know exactly how much you will repay throughout the term of the agreement   

Once all of the payments have been paid the car is yours  

Features and Benefits 

• Fixed monthly repayments 
• Low Deposit 
• Ownership of Car 
• Budget with confidence 
• Freedom, no mileage restrictions 
• Ability to settle the loan early

Personal Contract Purchase (PCP)

Similar to a Hire Purchase agreement but with additional flexibility since part of the cost is deferred until the end of the agreement which may give you the benefit of lower monthly payments. The deferred amount is known as the Guaranteed Future Value (GFV) sometimes known as Optional Final Payment.

What happens next? 

At the end of your PCP agreement, you then have a number of options.   

• Option 1 - Part-exchange your vehicle-use any equity above the Guaranteed Minimum Future Value as an initial deposit on your next purchase.   
• Option 2 - Keep your vehicle-simply pay the Guaranteed Minimum Future Value to retain ownership.    
• Option 3 - Refinance the final balloon payment.    
• Option 4 - Return your vehicle and have nothing further to pay, subject to vehicle condition and within the agreed mileage terms. (Subject to terms and conditions).

Features and Benefits 

• Flexible deposit 
• Low fixed monthly payments 
• The choice at the end of the agreement 
• No need to worry about depreciation 
• Potential lower payments than a standard HP agreement or Conditional Sale