FINANCE EXPLAINED
These are two very common ways to finance a vehicle and here at Hartwell our team is available in person, online or over the phone to discuss your options.
However, to get you started we want to shed some light on two options below so here is our breakdown of what each plan involves along with some key takeaway points…
HIRE PURCHASE
Hire purchase is an instalment-based finance option, and the first thing reader should note is that you don’t own the vehicle until the final payment is made.
This is a popular way to finance the purchase of a new or used car (provided you have a good credit rating) from Hartwell, and more often than not you are expected to pay an initial deposit, followed by monthly instalments to the value of the car, with the loan secured against the car.
Instalments tend to be over a period of 12 to 60 months.
WHAT YOU NEED TO KNOW:
- This is a flexible arrangement and is designed to suit budgets
- Often the deposit is low
- Hire purchase deals often come with mileage restrictions
- Without permission, you can’t change or modify the car
PERSONAL CONTRACT PLAN (PCP)
PCP is also a finance agreement where you place a deposit and it is then followed by a period of monthly instalments set between 24 and 48 months. The difference between the PCP and Hire Purchase comes towards the end when a final payment is required.
You are then presented with 3 options:
- Give the car back
- Part exchange for a new car
- Make the final payment and own the car
WHAT YOU NEED TO KNOW:
- You can often get lower monthly payments than Hire Purchase
- Greater choice in the latter stages of the agreement
- Lower deposit deals tend to suit the PCP arrangement
We are available to discuss options around car finance, so feel free to get in touch.