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Why Dealer Finance?

1. 60 second application
2. Sign finance agreement
3. Drive away in your new car


What is PCP Finance?

Personal Contract Payment (PCP) is a finance product that reduces the monthly payments by delaying part of the repayment until the end of the contract. It offers a wide range of flexibility giving you the option to choose your annual mileage and deposit which in turn determines the monthly payment.

PCP is a very flexible method of payment. As with Hire Purchase, the more you put down as a deposit, the less you will pay back each month, however, with PCP a low annual mileage can also mean that you pay less per month. An accurate mileage prediction is important for PCP as it affects the residual value of the car so it is important to give clear and accurate information as penalties can apply if you exceed your stated mileage.

Benefits of PCP

  • Lower monthly payments than a personal loan or Hire Purchase
  • Multiple options at the end of the agreement
  • Guaranteed future value of the car
  • Ability to drive a more expensive car due to lower monthly payments


What is Hire Purchase?

Hire Purchase (HP) is a finance product that allows you to budget accurately thanks to fixed interest rates and monthly payments. With HP you are effectively hiring the car until the end of your agreement when with your final payment you purchase it and the car becomes yours.

HP deals can be tailored to your requirements by simply adjusting the length of your agreement (usually from 1 to 5 years) and the amount you pay as an initial deposit. Typically, a deposit will be around 10% of the total value of the car; however, a 0% deposit may be an option.

With HP financing your new vehicle acts as the security for the finance arrangement, ensuring that any other lines of credit that you may wish to take advantage of remain open to you. Because of the flexibility of Hire Purchase, you are able to settle your agreement at any time, without financial penalty. You could also upgrade before the original arrangement is complete and a new payment plan will be organised for your new vehicle.

Benefits of HP

  • At the end of the agreement you own the car outright
  • The vehicle acts as security so you are not closed off from other forms of finance
  • Easier to get approved on
  • No mileage restrictions

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