Once you’ve found the perfect new car, Dickson’s are on hand to help you make it yours! This is why we offer fantastic car finance offers on all of our new and used cars. If you can’t make one lump sum payment to get the keys, we will help you finance the purchase with one of our popular PCP car deals or other type of car finance plan. Read on to find out how the different finance options work and which is best for you.
Hire Purchase – HP
The traditional and popular funding option, HP finance means that you loan a vehicle but will eventually own the vehicle, at the end of the loan plan. This finance option has a fixed cost over a fixed period so that you can easily spread the cost of the vehicle over your chosen period of time. You are effectively the owner of the vehicle during this time, but legally, the title of the car does not pass until the loan agreement is fully repaid with a final payment which includes a nominal “option to purchase” fee.
Lease Purchase is a funding agreement wherein the purchaser acquires ownership when all the payments, including the option to purchase fee, have been made. Part of the capital cost of the vehicle payment may be deferred into a “balloon” payment at the end of the agreement, which equates to the anticipated value of the vehicle. This option is beneficial for individuals who are not looking to budget over the course of the loan.
Personal Contract Purchase – PCP
PCP is an increasingly popular choice for car finance. PCP car deals offer the best in flexibility at the end of the agreement and allow you to make low fixed monthly payments. At the beginning of the agreement your car’s guaranteed future value (GFV) is calculated, based on the vehicle’s age and the amount of miles you’re likely to cover annually. With a PCP Agreement you don’t have to commit to buying the car as you can wait until the very last payment to decide what you want to do.
• The options you could choose include:
• Buy the car by paying an agreed minimum residual value
• Part-Exchange the car for another
• Sell the car privately
• Return the car with nothing more to pay (e.g. if depreciation resulted in negative equity).
To find out more about new and used car finance plans from Dicksons, you can get in touch with our friendly and knowledgeable team on 01463 712800 or leave us an online enquiry and we will get back to you shortly.