PCP Car Finance To Suit Your Budget

Car Finance

Rates from 10.9% APR. Representative APR 22.45%

 

Representative Example: Borrow £6,000 with £1,000 deposit over 48 months with a representative APR of 22.45%, the monthly payment would be £153.29, with a total cost of credit of £2,357.76 and a total amount payable of £7,357.76. Car Loans UK is a broker not a lender. This is an example only, all finance subject to status. Lender fees may apply.

What Is Personal Contract Purchase Finance?

If you’re looking for a car on PCP finance then look no further, because Car Loans UK has got you covered.

PCP (personal contract purchase) car finance is a form of loan agreement that allows you to purchase a car.

Not to mention the difference between using a PCP loan to buy a vehicle and a typical personal loan. Is that the loan doesn’t pay off the full value of the car. Because you won’t own the car once you have made the final payment. Unless you make an additional optional final repayment. The payment is then calculated again using GMFV. GMFV is an estimate of what your car will be worth at the end of a PCP contract. 

However, this is usually reflected in lower monthly repayments. Additionally, we at Car Loans UK will compare PCP car finance deals and find the perfect vehicle as well as the perfect PCP finance quote to suit you. 

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Find out how much you could borrow

 

Representative Example: Borrow £6,000 with £1,000 deposit over 48 months with a representative APR of 22.45%, the monthly payment would be £153.29, with a total cost of credit of £2,357.76 and a total amount payable of £7,357.76. Car Loans UK is a broker not a lender. This is an example only, all finance subject to status. Lender fees may apply.

How Does Car Finance Work?

Car Finance

The Initial Deposit

This step isn’t always required. Although, placing down a deposit when completing a car finance agreement is highly recommended.

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Repayment Plans

Depending on the agreement that has been put in place for example HP, PCP & CS, your repayment plan may vary.

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Contract Completion

Upon completion of your contract, you will then have a number of different options available to you. Which we will state below.

Is PCP Car Finance The Right Choice For You?

With PCP, you tend to have lower monthly repayments as opposed to Hire Purchase. However, it’s best to remember that the full amount payable is usually higher.

PCP works by having a loan for the difference between the car’s price at new and the anticipated value once the agreement is completed. Moreover, a forecasted annual mileage is used over the contract period. Plus, PCP agreements include the APR, because it takes into account the interest charged on the outstanding balance and any other fees associated with the loan agreement. 

PCP finance does tend to be one of the more complicated car finance options on the market. However, it is still one of the more popular options alongside HP car finance. PCP could be an attractive option for those who do not wish to keep the vehicle at the end of their car finance contract. 

Car dealerships offer different APR interest rates. Some of the best PCP car finance deals are offered by a specific car manufacturer. However, your credit rating also influences the interest rate.

(Approximate) APR interest rates for finance applicants with a solid credit rating range from 4-8%. APR interest rates can go up to 50% for applicants with a poor credit rating. Also if you have a significant deposit available to spend on the car, you could attract 0% finance.

People buy cars every day. But what works for one household may not work for yours. Of course PCP finance is one option. However there are numerous other finance options available, therefore it is important to weigh up all of your options. If you wish to own the vehicle at the end of your car finance contract without paying the balloon payment. HP car finance may be a more attractive option as you will be able to own the car as soon as all payments have been made.

The Latest From Car Loans UK

Hp car finance

What Is Hire Purchase Car Finance?

Hire Purchase (HP) car finance is one of the most common forms of car finance. It allows you to buy a vehicle and pay for it over an agreed period, usually on a monthly basis. Once the last payment has been made, you will own the car outright.

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Car Loans UK is a trading style of BMG FG (UK) LTD, a company registered in England and Wales. (Company number: 12382512, Registered Address: 4th Floor, Kingsgate, Wellington Road North, Stockport, Cheshire, SK4 1LW. We act as a credit broker and not a lender and are authorised and regulated by the Financial Conduct Authority for consumer credit FCA no.928674. Car Loans UK can introduce customers to a limited number of finance providers based on overall credit profile and we receive a commission for such introductions, this will not impact the rate you are provided. We do not charge a fee to the customer for arranging the finance. This is a fixed payment or percentage, but can vary by lender. Further information is available on request. Written quotations on request. All finance subject to terms and status Data Protection Registration No.ZA766848.