Vehicle Finance [Explained]: Howards Motor Group
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Vehicle Finance Explained

Personal Contract Purchase

More commonly known as PCP

If you're looking for a flexible popular choice to buy a new car or van, this is it. PCP works by letting you keep your monthly repayments lower by creating a larger final payment at the end of the agreement. Giving you the flexibility to buy that car that would normally be out of your price range if purchased by a one-off payment. To agree with your PCP agreement the finance company set a guaranteed future value of your new vehicle, which you don't have to pay back. You’ll pay an agreed initial deposit, plus the agreed monthly repayments including the agreed interest charge. At the end of the agreement, you have 3 options...

  1. Pay the guaranteed future value of the vehicle and drive away as the new owner

  2. Hand back the keys to the vehicle with nothing to pay

  3. Part exchange the vehicle as a deposit on your next new car

...The choice is yours!

PCP Is Ideal If You....

  • Are looking to purchase a more expensive car with lower monthly repayments

  • Want to change your vehicle regularly, keeping up to date with the latest models

  • Want to stick to a fixed monthly amount with a budget

  • Want a guaranteed future value for your vehicle at the end of the agreement

  • Want to buy a new or used vehicle

  • Are able to pay the agreement off early - You may be entitled to a rebate.

  • Are over 18 years old

  • Have a fully comprehensive driving license

  • Are going to be the only registered keeper of the vehicle

Things You Need To Know About PCP...

  • At the end of the agreement, you have to pay back a large sum of money to own the vehicle. You need to be aware of this and budget accordingly if you want to be the owner of the vehicle at the end of the PCP contract

  • Are you able to set an expected annual mileage? If you can, this agreement is for you. If you can't, you may negatively affect your monthly repayments and the guaranteed future value of the vehicle. As well as acquiring extra charges.

  • Additional charges will apply if you hand back the vehicle in a poor condition

  • You cannot sell or give the vehicle away until the agreement is paid off in full

  • Your vehicle may be repossessed if you don’t make your regular monthly payments

  • View our Used Car stock and see instant finance quotes on vehicles you are interested in by clicking the button below.

Hire Purchase

More commonly known as HP

Buying the car of your dreams has been made easier by the option of Hire Purchase (HP). You are able to spread the cost of your vehicle, over an agreed number of months.

With HP you will pay an initial deposit on the vehicle, which differs depending on the cost of the vehicle and what you can afford.

Once you have agreed to the above, signed the documentation the vehicle is yours to drive away. Happy new car day! Once the agreed number of monthly payments have been made are complete, the car is yours, forever.

You are now the proud owner of this vehicle and you may carry on driving it, sell it or part ex it for a new vehicle. The choice is yours.

HP Is Ideal If You...

  • Want to own the vehicle outright

  • Have a monthly budget

  • Want to stick to a fixed monthly amount

  • Want to pay the agreement off over 12 to 60 months

  • Want to buy a new or used vehicle

  • Are able to pay the agreement off early. You may be entitled to a rebate.

  • Are over 18 years old

  • Have a fully comprehensive driving license

  • Are going to be the registered keeper of the vehicle

Things You Need To Know About HP...

  • You are protected under the consumer credit act termination rights and are protected by the consumer rights act

  • Your vehicle may be repossessed if you don’t make your regular monthly payments

  • You're not protected against depreciation

  • You cannot sell or give the vehicle away until the full agreement is paid off

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Reputation Reviews

  • Howard Garages (Weston) Ltd is an Appointed Representative of Automotive Compliance Ltd, who is authorised and regulated by the Financial Conduct Authority (FCA No 497010). Automotive Compliance Ltd’s permissions as a Principal Firm allows Howard Garages (Weston) Ltd to act as a credit broker, not as a lender, for the introduction to a limited number of lenders and to act as an agent on behalf of the insurer for insurance distribution activities only. Company Number: 1108986

    We can introduce you to a selected panel of lenders, which includes manufacturer lenders linked directly to the franchises that we represent. An introduction to a lender does not amount to independent financial advice and we act as their agent for this introduction. Our approach is to introduce you first to the manufacturer lender linked directly to the particular franchise you are purchasing your vehicle from, who are usually able to offer the best available package for you, taking into account both interest rates and other contributions. If they are unable to make you an offer of finance, we then seek to introduce you to whichever of the other lenders on our panel is able to make the next best offer of finance for you. Our aim is to secure the best deal you are eligible for from our panel of lenders. Lenders may pay a fixed commission to us for introducing you to them, calculated by reference to the vehicle model or amount you borrow. Different lenders may pay different commissions for such introductions, and manufacturer lenders linked directly to the franchises that we represent may also provide preferential rates to us for the funding of our vehicle stock and also provide financial support for our training and marketing. But any such amounts they and other lenders pay us will not affect the amounts you pay under your finance agreement, all of which are set by the lender concerned. If you ask us what the amount of commission is, we will tell you in good time before the Finance agreement is executed. All finance applications are subject to status, terms and conditions apply, UK residents only, 18’s or over. Guarantees may be required.