Hire Purchase (HP)
Deposit + monthly payments
Hire Purchase is a finance plan that allows you to pay for the vehicle by fixed monthly payments over the term of the agreement. Hire purchase is a secured loan so the finance company has the vehicle as security for the loan until all payments and fees are made. At the end of the term of the agreement, after all payments and option to purchase fees are made, you take full ownership of the vehicle.
Personal Contract Purchase (PCP)
Personal Contract Purchase, or PCP, is a finance plan variation of a Hire Purchase agreement. The key difference is that the value of the car at the end of the contract is calculated at the start of the agreement and this value is deferred. This deferred sum is usually referred to as the Guaranteed Minimum Future Value (GMFV) and is based on a number of factors including how old the car will be at the end of the agreement and how many miles it is expected to have covered. The future value of the car is guaranteed by the lender so will not fluctuate. Deferring the GMFV to the end of the agreement in this way means that your regular monthly payments are lower than those on a comparable HP agreement over the same term.
A PCP agreement also gives you the flexibility to decide whether you would like to own the car outright at the end of the agreement by paying the deferred value (GMFV), or returning the car to the lender and entering into a new car finance agreement.
Buy it Now
A single payment
You can fund your replacement vehicle by simply using your cash settlement/Pre-Accident Value (PAV) you receive from your insurance company, including the option of adding to this amount with either cash or finance from one of our other available options.