At CMW we appreciate that deciding to purchase a car (and deciding where to purchase from) is an extremely important decision. We strive to create an open and honest approach and ensure our customers are provided with information to support them in making the best possible choice for their needs.
We can offer a range of competitive and flexible finance options for both new and used vehicle purchases - deciding how to finance your car is an important decision and the brief descriptions following will walk you through the most popular finance plans – Hire Purchase (HP) and Personal Contract Purchase (PCP);
Hire Purchase (HP) Hire Purchase (HP) is one of the most popular ways of financing your vehicle. You pay an initial deposit followed by monthly payments and when all the payments are made, the car is yours.
- You’ll be able to drive away with a car you may not be able to afford outright
- You’ll pay less overall to own the car than with other finance deals
- Once you’ve made your final payment you own the car
Things to bear in mind
- Monthly payments will be higher than with other finance deals
- You won’t be able to sell the car without settling the finance
Personal Contract Purchase (PCP) You’ll pay an initial deposit, followed by monthly payments. A Guaranteed Future Value (GFV) is also initially calculated which is the car’s expected value when your payments end. Once your payments are finished, you’ll have three options
- Buy the car by paying the final payment
- Hand the car back
- Part exchange for a new car
- The deposit and monthly payments are usually lower than Hire Purchase
- If you decide not to buy the car, you can walk away at the end of the contract
- You can drive away a brand new car every three years without worrying about it running out of warranty or selling it on
Things to bear in mind
- If you want to buy your car, PCP is more expensive than an HP agreement
- You don’t fully own the car until the final payment is made
- You’re limited to the initial agreed mileage - going over this may cost you extra
Both types of finance agreement are regulated by the Consumer Credit Act, which allows you to make overpayments whenever you want without any financial penalty, plus you can pay off the agreement early, again without any financial penalty. CMW is a broker not a lender and we primarily use Suzuki Financial Services and Evolution Funding.