Personal Contract Plan (PCP)
If you want a finance plan with more flexibility then a Personal Contract Plan may be your answer. You choose to keep, exchange or return your car at the end.
A portion of the car’s value is deferred - this then becomes your optional final payment which sometimes referred to as a Guaranteed Minimum Future Value GMFV)
Based on your deposit, which could be as low as one repayment in advance, we will work out your regular fixed repayment and at the end of the agreement you have three options:
Option 1: Part-exchange for a new car
Option 2: Pay the optional final payment and own your car
Option 3: Return your car
(subject to condition and mileage detailed in your contract)
Hire Purchase (HP)
If you want to own your car at the end of your finance plan and want regular monthly repayments Hire Purchase could be your answer.
You choose the initial payment, choose the term (between 12-60 months) and the payment is then divided equally over the term of your agreement.
Once the last payment has been paid plus the option to purchase fee (between £10.00 - £180.00 depending on finance company) the car is yours to keep.
Personal & Business Contract Hire (PCH/BCH)
If you’re interested in hiring your vehicle rather than owning it, then Contract Hire may be your answer. You pay a monthly rental for the vehicle and change it on a regular fixed period.
Once you have chosen your vehicle you then have three choices which effect your monthly rental payments:
Choose a rental term between 12-48 months
Choose how many miles you expect to drive each year
Choose whether to include a service, maintenance and tyre plan
When all the rentals are paid you then hand the vehicle back.
(subject to fair wear and tear as detailed in your contract)
Personal & Business Operating Lease (POL/BOL)
Operating Lease is very similar to contract hire. The main difference between the two is you are registered as the keeper of the vehicle instead of the finance company. In business situations your accountant will advise either option depending on your circumstances
Lease purchase is a form of conditional sale agreement, which means that the regular payments are similar to a PCP but you will own the car at the end of the deal. The main difference between a lease purchase and a PCP agreement is that the deferred sum (Guaranteed Minimum Future Value (GMFV) in a PCP) must be paid on at the end.