What are My Car Finance Options?

When you decide to buy a car, you will need to think carefully about the make, model, body style, features and colour. Another aspect you will need to consider, which is equally important, is how you are going to pay for the vehicle. Car finance may seem complicated and confusing, but at Wavertree Car Centre, we specialise in problem finance, and whatever your credit situation, we will ensure that you understand your options and help you secure the right deal.

Hire Purchase (HP)

Hire purchase finance enables you to divide the cost of a vehicle into more manageable monthly payments, so that you don’t have to fork out a huge sum all at once. You will able to start driving the car straight away, however, it will not officially belong to you until the end of your contract, which typically lasts between 12 and 84 months.

After your agreement period is up, and you have made all of the repayments necessary to cover the cost of the vehicle, you will become its legal owner. It’s as simple as that!

Personal Contract Purchase (PCP)

Personal contract purchase finance is just as popular. Again, this type of finance agreement lets you spread out your payment across a number of months, although, unlike HP finance, you will not be paying back the total cost of the vehicle as it is currently priced.

When you initiate a PCP contract, an estimation of how much your vehicle will be worth when your agreement period ends will be calculated; this is referred to as the Guaranteed Future Value (GFV). The difference between the car’s GFV and its total cost will then be divided by the contract duration to give you the cost of your monthly repayments, so they will be less than they would in a HP agreement.

The remaining portion of the vehicle’s price will be set aside until the end of your PCP agreement, when it will become your optional final and payment. When your contract ends, you can either pay this amount and keep the vehicle, refinance the car or return it and simply walk away.

Car Finance at Wavertree Car Centre

PCP and HP agreements are available for a number of our used cars at Wavertree Car Centre, and we will consider your application whether your credit rating is good, average or poor. Click here to apply online!