A very popular way of financing a new or nearly new car with affordable monthly payments. You choose the car, pay your deposit to the dealer and we’ll pay the remainder. At the end of the agreement there’s a final balloon payment which you can either pay and keep the vehicle, or just hand it back to the finance company without further obligation. Mileage restrictions will apply if you do hand the vehicle back.

Example:PCP

Used Range Rover Sport with a purchase price of £30,000.00

Your preferred deposit of £5,000

We’ll finance the remaining £25,000

Repayable by 35 monthly payments at £499.80

And a final optional balloon payment of £11,970.00

 

Most finance companies will have document fees payable with their agreements – typically around £150 with the first and last payments. These are taken into account when calculating your APR.

Why choose this finance agreement?

Choose Contract Purchase if you are looking to get the most car for your money, and don’t want the hassle of selling the car. Monthly payments are usually lower than a traditional hire purchase. However you will have less equity at the end of the agreement.

What can I finance on hire purchase?

New and used cars, up to 5 years old at the beginning of the agreement and up to 9 years old at the end.

Who owns the car?

The finance company will be the legal owners of the car until all payments are made, but your name will appear on the vehicle registration document (V5) as the registered keeper.

Can I pay more per month to reduce my balance?

Yes you can – a conditional sale contract purchase agreement is very flexible. You can if you wish pay additional lump sums at any time and reduce your monthly payments, reduce the final balloon payment. The total interest payable is recalculated and reduced if you do pay lump sums.

I want to change cars, but I haven’t finished paying for it yet.

No problem, you can settle your finance agreement at any time and benefit from a regulated settlement figure which will take into account a rebate of interest charges not payable. If you’re part-exchanging the car then we can settle the finance for you as part of a new finance agreement on your next car.

I’m at the end of my contract and I don’t want to keep the car.

You can if you wish just hand the vehicle back to the finance company with nothing else to pay, assuming you have kept the vehicle in reasonable condition and haven’t exceeded your annual mileage. If you are over mileage, you can still hand the car back but there may be a charge to pay for excess mileage. This is outlined in your finance agreement.

I’m at the end of my contract and I do want to keep the car, but I can’t afford the balloon.

We can re-finance the final balloon payment for you on a straight hire purchase term.