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Personal Contract Purchase

More commonly known as PCP

If you're looking for a flexible popular choice to buy a new car, this is it. PCP works by letting you keep your monthly repayments lower by creating a larger final payment at the end of the agreement. Giving you the flexibility to buy that car that would normally be out of your price range if purchased by a one-off payment. To agree with your PCP agreement the finance company set a guaranteed future value of your new vehicle, which you don't have to pay back. You'll pay an agreed initial deposit, plus the agreed monthly repayments including the agreed interest charge. At the end of the agreement, you have 3 options...

• Hand back the keys to the vehicle with nothing to pay

• Part exchange the vehicle as a deposit on your next new car

• Pay the guaranteed future value of the vehicle and drive away as the new owner

...The choice is yours!

Hire Purchase

More commonly known as HP

Buying the car of your dreams has been made easier by the option of Hire Purchase (HP). You are able to spread the cost of your vehicle, over an agreed number of months. With HP you will pay an initial deposit on the vehicle, which differs depending on the cost of the vehicle and what you can afford.

Once you have agreed to the above, signed the documentation the vehicle is yours to drive away. Happy new car day! Once the agreed number of monthly payments have been made are complete, the car is yours, forever.

You are now the proud owner of this vehicle and you may carry on driving it, sell it or part ex it for a new vehicle. The choice is yours.

Personal Contract Hire

More commonly known as PCH

Personal Contract Hire is a fixed cost rental agreement.

You first choose your new car, pay an initial rental in advance, followed by fixed monthly rentals to suit your budget. You can even choose an optional maintenance package as part of your agreement which can help take away the hassle of keeping your vehicle in good condition.

It's different from Personal Contract Purchase (PCP) because there is no option to purchase the car at the end of the agreement and the vehicle must be returned.

Personal Contract Hire works by choosing from an initial rental payment in advance of 1-12 months, you then set the contract term between 2-5 years.