Car finance can be confusing, and sometimes hard to understand. We are here to bust the myths and demystify it, so you can decide whether or not car finance is right for you.
There are different types of car finance, so let’s run through the most popular options so you can see how they would work…
PCP
PCP stands for personal contract purchase. It is one of the most popular types of car finance, known for its flexibility at the end of the agreement. You pay a deposit and your payments are spread over a number of months. At the end you can usually give the car back, pay a balloon payment to keep the car or use it as a downpayment on your next agreement. This will be detailed out before you sign anything though.
HP
Hire purchase is similar to PCP but at the end of the agreement, it is designed so that you own the car. The particulars will vary and you may have to pay a sum at the end to own it, so check out the details of the agreement and make sure you’re happy with it all.
Bad credit car finance
This is a type of finance that can help people drive away even if they have struggled with finance in the past. Some lenders work with bad credit car finance to offer those with poor credit the chance to get approved, even if they have been refused before.
There are important things to look out for and consider before you commit to car finance. Think about whether you are happy to pay the monthly repayments and if you can commit to the agreement. If the answer is yes, you can apply for finance online or get in touch to find out more about the options available to you.