HIRE PURCHASE
The most popular and straightforward option. Spread the cost of your purchase over a fixed term – you choose your deposit and the length of the agreement.
LEASE PURCHASE
Similar to Hire Purchase but you can defer an agreed amount of what you are borrowing until the end of the agreement (balloon payment). A the end of the agreement you can choose to pay the balance and keep the car or part exchange it. The benefit – lower monthly payments.
PERSONAL CONTRACT PURCHASE
PCP is similar to Lease Purchase with an agreed amount being deferred to the lower monthly payments. The main difference is that a final Guaranteed Future Value is agreed at the start based on your annual mileage and the length of the agreement. At the end of the agreement you have the additional option to hand the car back (provided it is in good condition and within the agreed mileage), part exchange it or pay the balance and keep the car. Benefits – lower monthly payments, peace of mind, protection from unexpected depreciation,