Heading
Close X
Menu
Finance
Buying a new or used car doesn’t come cheap, with the option of spending thousands of pounds outright beyond the means of many. That’s why we at Bellinger in Wantage and Abingdon are pleased to be able to provide you with financing options that make purchasing easy and affordable. The purchase plans we have available enable you to pay a small deposit followed by fixed monthly repayments over an agreed period of time. Through competitive rates of APR - plus regular special offers - these repayments are manageable and affordable for all.
The sales experts at Bellinger will be able to provide you with all you need to know about the Hire Purchase and Personal Contract Purchase schemes that we have available today. Each scheme offers exceptional value for money and can be tailored to suit your own particular circumstances. Plus, we have financing calculators on each listing page to demonstrate the affordability on offer.
To learn more about car finance with Bellinger, Contact a member of the team today.
What is Personal Contract Purchase (PCP)?
Personal Contract Purchase
A PCP agreement is arguably the most cost effective way to lease a quality vehicle with low monthly repayments. You simply pay a deposit followed by fixed monthly installments which cover the value of depreciation from the listing price to the guaranteed future value price. At the end of the agreed term, you will be able to return the vehicle to us with no further obligations. Alternatively, you can choose to pay the guaranteed future value cost to become the owner of the vehicle.
How does PCP actually work?
Close
When you have chosen your vehicle, you will then agree your annual mileage and decide on the agreement term with one of our Retail Managers.
We will then determine the Guaranteed Minimum Future Value (GMFV) of the vehicle at the end of the agreement and work out a deposit and monthly amount that works for you.
At the end of your agreement you will then have three options:
Return – Simply return the vehicle the back to the finance company
Retain – Keep the car by paying the optional final payment
Renew – Trade it in for another car
For a quotation, help, or advice contact us and ask to speak to one of our Retail Managers.
What are the advantages of PCP?
Close
- Monthly payments on a vehicle financed by PCP are usually lower than if your vehicle is financed by a Hire Purchase agreement.
- If you decide not to buy the vehicle, you can simply walk away when you've made all the payments.
- Similar to PCH, you can drive away a new or used vehicle every few years (dependent on the chosen term) without worrying about selling it on.
- If your vehicle is worth more than the Guaranteed Future Value then you can use that equity towards a deposit on a new vehicle.
What should you consider when option for a PCP?
Close
- If you want to buy the vehicle you will need to pay your final balloon payment (the Guaranteed Future Value).
- Similar to PCH, you will need to agree on a mileage allowance at the beginning of your contract and there may be excess mileage charges if you exceed this.
- You won’t be able to sell the vehicle without settling the finance.
- You won’t own the vehicle until you have made all of your repayments.
- You’ll need to keep the vehicle properly insured, maintained and in your possession until the full value is paid off.
Can I settle my PCP agreement early?
Close
You can normally settle your agreement early by asking the finance company to provide you with a settlement figure. However, the finance company will require you to pay off the difference between what your vehicle is worth and what you still owe. There may be a difference which is known as negative equity. On the other hand, you may find that at the end of your term your vehicle is worth more than the Guaranteed Future Value, which means you will have some positive equity to contribute towards your next vehicle.
What is Hire Purchase (HP)?
Hire Purchase
Hire Purchase is not dissimilar to PCP in that you will pay a deposit followed by fixed monthly payments over an agreed term. Unlike PCP, however, the monthly payments are paying off the outstanding balance of the vehicle. As a result, you will be the outright owner of the vehicle once your final payment has been made.
What are the advantages of HP?
Close
- You’ll be able to drive away a vehicle that you may not have managed to buy outright.
- Unlike a PCP or PCH contract, you won't need to estimate your mileage at the start of your Hire Purchase agreement, so you'll avoid excess mileage charges.
- Once you’ve made your final monthly payment, including the option to purchase fee, you'll have full ownership of the vehicle.
What should you consider when opting for HP?
Close
- Monthly payments may be higher than some other finance options, such as PCP, as you're paying off the full value of the vehicle.
- You won’t be able to sell the vehicle without settling the finance.
- You won’t own the vehicle until you have made all of your repayments.
- You’ll need to keep the vehicle properly insured, maintained and in your possession until the full value is paid off.
Can I settle my HP agreement early?
Close
The short answer is yes, you can end your finance early. There are different provisions within each finance agreement that allow you to do just that. If you have paid two-thirds or more of your finance agreement, the options to end the finance agreement early open up.
For a Hire Purchase agreement, there is an option of paying it off early through a settlement fee. A settlement fee covers the cost of any remaining unpaid instalments and interest payments remaining on the agreement. Once the settlement fee is paid, you take full ownership of the vehicle early.
Under a Personal Contract Purchase agreement, you can also pay a settlement fee for bringing the agreement to an end early. After that, you can choose to hand the vehicle back or you have a second option. Through a PCP agreement, you can take full ownership of the vehicle by paying off the remaining Guaranteed Minimum Future Value also known as a balloon payment.
