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Car Finance Rescue

Car Finance Explained - Understanding your Car Finance Options

If you do not know your PCP from your HP then we are here to help. At CarFinanceRescue we are committed to helping you find the most appropriate car finance package around your own unique circumstances. We can provide help and advice on any aspect of the finer details of car finance that you may not fully understand.

 

Hire Purchase (HP) explained

Hire Purchase (HP) is perhaps the most common car finance product. HP allows you to use the car while paying for it and at the end of the agreement you can take ownership of it with an additional sum called the 'Option to Purchase Fee'. The car is in fact the security for the agreement.
 

Personal Contract Purchase (PCP) explained

Personal Contract Purchase (PCP) is a purchase agreement (similar to a Hire Purchase agreement) that is governed by vehicle mileage and term (period fo agreement), where a predicted minimum value (GMFV) is offset until the end of the agreement. At the end of the agreement there are three options:

  1. Part exchange for another car
  2. Pay the final payment and keep the car
  3. Return the car and walk away
     

 

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