Finance at Accrington Garages
If you want to buy your perfect car and you want lower monthly repayments, a PCP could be just right for you.
Here’s how it works.
Here's an example....
A car costing £12000 will be bought over 3 years. The deposit from your old car in part exchange is £2000. Which leaves £10000 to pay. Let’s imagine the interest on the borrowing over 3 years will be £1700. So the total amount of the finance is £11,700. Divide that by 36 months and you will have a monthly payment of £325.
With a PCP you get 4 Options at the end of the lease:
Option 1: Pay back the final payment and keep the car
Option 2: Refinance the final payment over a further period
Option 3: Sell the car and use any surplus for a deposit on a newer car
Option 4: Don’t pay the final payment, hand back the keys and walk away
Why would you choose a PCP?
In summary, with a PCP the advantages are:
- Lower monthly payments than hire purchase for the same car over the same term
- A low deposit at the start
- You can pay off the whole finance mid-term if you want
- Fixed monthly payments throughout the term of the agreement
- With a PCP there’s additional flexibility at the end of the agreement on what you want to do with the car
If you want to buy your perfect car and you want to own the vehicle at the end of the agreement, a HP could be just right for you.
Here’s how it work.
Here's an example...
Let's say you want to buy a car costing £5000 and you can pay a deposit of £500. This leaves £4500 left to pay. If you decide you can pay over 3 years, let’s say the interest on the amount you’re borrowing is £400, so the total you’re paying back is £4900. Divide by the number of months, in this case 36, and you have a fixed monthly payment of £136.11. Nice and simple.
Until you pay off the finance, the car doesn't belong to you. Once you’ve made the last payment, the car is yours to keep.
Hire Purchase is great if you want a fixed monthly payment and want to own the car at the end. Monthly payments will be higher than a Lease Purchase or PCP agreement, but you won’t have a larger final payment either.
Why would you choose a HP?
In summary, with a HP the advantages are:
- Fixed monthly repayments
- No final large payment
- Up to 5 years to pay back.
- The loan is secured on the car, not your home.
- If you repay early you can save some of the interest charges.
- You own the car at the end.
Car leasing or a contract hire is a brilliant way to make car ownership affordable and convenient. With used and new van lease cars available at Perrys, our car lease offers options are made to fit your individual or business budget. Contact your local dealership for a personalised quotation.
- No need to sell the car or make a balloon payment at the end of the term
- Affordable monthly payments, particularly for vehicles with strong residual values
- Up to 100% of VAT reclaimable for businesses
- Maintenance can be included for predictable running costs
We are here to help, just get in touch with us using the Finance enquiry form above or complete the finance application form below.
Alternatively call us on 01254 868224 to discuss your requirements.
W.S. (Accrington) Limited T/A Accrington Garages is an appointed representative of ITC Compliance Limited which is authorised and regulated by the Financial Conduct Authority (their registration number is 313486) and which is permitted to advise on and arrange general insurance contracts.
W.S. (Accrington) Ltd T/A Accrington Garages are acting as a credit broker and not a lender. We can introduce you to a limited number of lenders, commission may be received.