Thinking of Buying a Car on Finance but Confused by All the Jargon?

When thinking of financing your next car, you may have come across abbreviations such as HP and PCP. Why do they make it so complicated?

Forecourt-E has partnered with several car finance companies to ensure your options are broad, and that you have access to the best deals on the market at the time.

HP - 'Hire Purchase'

If it's easier to remember, think of it like this; Hired until Purchased.

You're essentially hiring the car from the finance company until you've paid it off, and therefore have purchased it outright. You pay a fixed amount each month until it's paid off, simple.

Example - £245.00/month for 3 years.

Terms can run from 12 to 60 months and you borrow a maximum of £75,000.

PCP - 'Personal Contract Purchase'

PCP agreements are generally cheaper per month but that is because they contain a balloon payment at the end.

This option is great for customers who like to change their vehicle more frequently as the terms are shorter in length - up to 48 months.

Example compared to HP...£180/month plus £5000 balloon payment at the end.

Let's say you don't fancy paying a balloon payment to own the car at the end, well it's not your only option;

  1. Pay the balloon payment and own the vehicle
  2. Finance that balloon payment
  3. Hand the car back to the finance company
  4. Part exchange the car - trade in your car to a dealer and take out a new finance deal

These agreements offer finance up to £50,000.

With MotoNovo, our preferred partner, the finance packages are self-serving so you can do this from the comfort of your sofa at home, with us on the end of the phone to answer any questions.

Get in touch if financing a car is something you are considering and we'll help you every step of the way.

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