Finance
Finance
We understand that choosing the right financing option for your new car can be confusing, there are a few options that may be available to you, and we want you to be able to make the right decision for you and your circumstances.
We’re here to help, and give you as much information as possible.
Below are some of the financing options that may be available to you with a simplified description of each, along with an informational video.
Personal Contract Purchase
A Personal Contract Purchase (PCP) is a flexible car finance agreement where you make an initial deposit, followed by fixed monthly payments that cover the car’s depreciation over an agreed term, and an optional final payment. At the start of the contract, we’ll set this optional final payment for the car, which will be based on your chosen term and approximate annual mileage. You select the deposit you wish to pay and then make monthly repayments based on the outstanding loan balance, less the optional final payment.
At the end of the contract, you have three options:
- Return the vehicle
- Pay a final balloon payment (Guaranteed Future Value) to own it
- Trade the vehicle in for a new one
Personal Contract Hire
Personal Contract Hire (PCH) is the choice favoured by most people who would prefer to lease a car for their personal use, rather than own one.
PCH offers fixed monthly costs for the right to use your chosen car over a pre-agreed period and mileage. Our vehicles come with a full manufacturer’s warranty and the manufacturers’ comprehensive breakdown cover.
At the end of this period you are not responsible for the disposal. You simply return the car without further cost, providing it has not exceeded the agreed mileage and the condition is reflective of its age and mileage. There is no option to own the car at the end of the contact.
Personal Motor Loan
A Personal Motor Loan (PML) is a traditional loan agreement that provides a straightforward path to car ownership over a fixed period. You can start by paying an optional deposit before you make the scheduled monthly repayments.
One of the key benefits of PML is the fixed interest rate, which means the amount you pay each month stays the same for the duration of the agreement. This consistent repayment schedule makes it easier to manage your budget and plan ahead, unlike other finance types that may involve variable interest rates or alternative payment structures – such as larger final payment at the end of the term outgoings.
There are no surprises at the end. Once all repayments are made, the car is yours. This makes a Personal Motor Loan an ideal finance option for those who want the security of knowing exactly what they owe, with the added advantage of full ownership at the end of the term.