Inchcape’s vast experience in financial services over many decades means we can arrange very competitive finance packages to help you buy the car you want in the way that suits you best.
Many manufacturers have their own finance packages, but providing you wish to do anything other than buy it outright in a cash purchase, the majority are variations of the following schemes.
Personal Contract Purchase (PCP) Finance
PCP generally offers a lower cost and more flexible alternative to Hire Purchase. A lower monthly payment is achieved by allowing you to finance the difference between the price of the vehicle and the projected value of the vehicle at the end of the Contract Term. PCP also offers much greater flexibility at the end of the contract.
How it works
PCP has been developed to allow you to change your vehicle more often than other forms of finance as effectively all you are paying for is the depreciation of the vehicle, and you have the comfort of knowing that we will guarantee to buy back your car back at the end of the contract at a pre-agreed price set at the start. This price is known as the "Guaranteed Future Value (GFV)".
The contract can be set from 24 to 42 months allowing you the flexibility to decide how long you would like to keep the car before you change it. When you reach the end of the contract you then have three options:
- You can keep the vehicle by simply paying off the outstanding GFV. You now own the vehicle outright.
- As long as the car in good condition and has not exceeded the agreed mileage you can return the car to us and not pay any more. We guaranteed this future value with you at the start of the contract, we will absorb the loss and allow you to choose a new vehicle and start again.
- You can part exchange the vehicle against a new car and whatever trade-in value we give you greater than the GFV can go towards your deposit.
Features
Excess Mileage
At the beginning of the agreement, you decide on the total mileage you expect to do. It is normal to pay a fixed amount for every additional mile over this agreed amount, so bear this in mind for when you hand your vehicle back at the end of your contract.
Wear & Tear
It is in your interest to minimize the vehicle's 'wear and tear' and not exceed the agreed mileage. When the agreement has finished, the vehicle may well be worth more than the MGFV, providing you with additional value. In simple terms 'normal wear and tear' means that for its age and mileage, the vehicle is in fair working order, condition and repair.
Peace of Mind
You have the option to protect your payments in the event of you not being able to work through sickness, accident or unemployment, or the full balance paid off in the event of death. You also have the option to take a 'Gap' policy which, in the event of your car being written off, will protect any shortfall between your insurance payout and the original invoice price.
Hire Purchase (HP) Finance
Hire Purchase is still the most popular way of spreading the cost of your car. Just decide how much you want to borrow (you don't always need pay a deposit) and repay with fixed monthly payments over any period up to 60 months. At the end of the contract the car is yours.
Features
Fixed repayments
At the beginning of the agreement, both the amount you pay every month, and the repayment period, is fixed and will not change. This is great for your budgeting.
Fixed interest
Even if interest rates go up, the interest rate on your finance repayments will not be affected.
Flexible payments terms
Choose any period from 12 months to 60 months to suit your budget. You work out what you want to pay each month and we'll work out how many months to repay it over to get you into your ideal car.
Peace of Mind
You have the option to protect your payments in the event of you not being able to work through sickness, accident or unemployment, or the full balance paid off in the event of death. You also have the option to take a ‘Gap’ policy which, in the event of your car being written off, will protect any shortfall between your insurance payout and the original invoice price.
Personal Contract Hire (PCH) Finance
PCH is becoming an increasingly popular way to drive away in a new car. It offers a pure lease arrangement, with no option to own the car as part of the scheme.
Features
Fixed repayments
At the beginning of the agreement, both the amount you pay every month, and the repayment period, is fixed and will not change. This is great for your budgeting.
Lower repayments
As this plan doesn't cover any ownership option, your monthly payments will be lower than on a purchased-based finance plan.
No long-term commitment
Once you have decided how much you wish to spend, and how many miles you do every month, you don't have to worry about what to do at the end of the plan. When it finishes, you give the car back, enabling you to start another agreement on a different vehicle if you wish.
Want to get in touch?
If you are thinking about financing a car purchase, contact us if you wish to talk over any of our schemes.