At Cuckfield Motor Company we are passionate about helping you find and finance your next used car. With our excellent used car finance options, purchasing and owning your next car purchase is easy. With our carefully selected finance deals it is easy for you to purchase the car you want.
What is car finance?
Car finance is a loan taken out specifically to purchase a new or used car. There are companies who specialise in finance just for cars, ensuring you are getting the best deal for your car purchase. It can be especially helpful if you need to buy a new car when you weren’t expecting or planning on needing to buy one.
How does car finance work?
There are different car finance options available to suit various needs and budgets. All options will involve borrowing money from a lender for the value of the car you are purchasing. A finance package will often require you to pay a deposit upfront, and then the rest of the cost will be spread over an agreed number of months.
What are the different types of car finance?
There are a few different types of used car finance, meaning you should be able to find something that suits your personal needs and budget. These include:
- Hire purchase (HP) finance
- Personal contract purchase (PCP) finance
- Personal loan
- Leasing
At Cuckfield Motor Company we offer HP and PCP car finance agreements. Find out more about the differences between these two types of car finance agreements below.
To talk to our team about buying your car on finance with us, simply call us on 01444 414129, pop into our showroom or fill out the contact form here and we will get back to you.
What is HP car finance?
A HP car finance agreement, or Hire Purchase, is a monthly repayment plan against the value of the car you are purchasing. You’ll need to put a deposit down first, which is usually at least 10% of the value of the car you are buying. The remainder cost is then split into monthly repayments over an agreed term, usually between one to five years. Because the interest rates and monthly payments are fixed, it allows you to accurately budget for your new cars. The deposit amount and the length of the contract can be adjusted to help find monthly payments that suit your budget. The finance is secured against the car, which means at the end of the agreement you will take full ownership of the car.
What is PCP car finance?
A PCP agreement, or a Personal Contract Purchase, delays part of the repayment until the end of your PCP agreement. This is designed to reduce your monthly payments, making it a good option if you have a lower budget to work with. You will still need to pay a deposit at the beginning, and monthly payments for an agreed length of time. But the deposit amount, monthly repayments, length of agreements and the final payment can all be adjusted to suit your budget and needs. The final payment is a larger sum, which is often referred to as a guaranteed minimum future value, future value or a balloon payment and is calculated using industry data to work out the likely value of the vehicle at the end of the agreement. When it comes time to pay off that final balance you will have three options available to you:
- Pay the final balloon payment to own the car outright
- Return the car to the dealership
- Return the car and exchange it for a newer model on a new PCP agreement
To talk to our team about buying your car on finance with us, simply call us on 01444 414129, pop into our showroom or fill out the contact form here and we will get back to you.
Why Finance Through a Dealership?
What is Hire Purchase?
What is Personal Contract Purchase?
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