Car Finance Explained
If you're new to the world of car finance, we appreciate it can seem daunting and confusing.
With so many different options, terms, and conditions to consider, it's easy to feel overwhelmed. However, car finance doesn't have to be complicated.
We're here to guide you through the process, answer any questions you may have, and ensure that you find a car finance solution that suits both your budget and lifestyle. Let’s break down the options and make it easier for you to get behind the wheel of your dream car!
What is PCP finance?
With PCP finance (Personal Contract Purchase), you pay an initial deposit, followed by monthly instalments, but a large portion of the loan is deferred until the end of the agreement. You can pay that final sum to own the car, hand it back or start another agreement.
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What's HP finance?
With HP (Hire Purchase), you pay a deposit up front, and then pay off the rest of the balance – plus the interest - in equal monthly instalments. You’ll pay an ‘option to purchase’ fee, then the car is yours at the end of the agreement.
What's Lease Purchase finance?
While Lease Purchase shares similarities with Hire Purchase, it offers lower monthly payments on average due to a final balloon payment.
However, unlike Hire Purchase (HP) or Personal Contract Purchase (PCP), there's no option to return the item at the end. This means you'll need to settle the final balloon payment in full, either with cash or another car financing arrangement.
Car Finance FAQs
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