Which Types of Car Finance Can I Get at Whitestone Garage?
As well as supplying used cars, Whitestone Garage also has a team of car finance specialists ready to help you secure a great deal on your next motor.
Car finance is becoming an increasingly popular option, enabling you to pay for a vehicle in manageable monthly instalments rather than all at once.
At Whitestone Garage, there are two main types of car finance agreement available for certain vehicles: HP finance and PCP finance.
HP (Hire Purchase)
With a hire purchase arrangement, you’ll pay a deposit, followed by regular monthly sums, until you have covered the cost of the car. When the contract term is over, you will officially own the car.
The good thing about HP finance is that it is straightforward and is also available for a large number of the used cars for sale at Whitestone Garage.
The downside is that your monthly payments will be higher than they would be with a PCP agreement.
PCP (Personal Contract Purchase)
PCP finance is similar to HP in that you make a deposit and regular monthly payments, but there is a bit more to it. Rather than your payments adding up to the cost of the vehicle, they will instead cover the cost of its depreciation.
With PCP contracts, an estimation of the car’s Guaranteed Minimum Future Value (GMFV) will be made, that is, the amount it will be worth at the end of the contract period. The total vehicle price will be divided by the GMFV to determine the monthly instalments. At the end of the contract term, you will be given the option to keep the car, but you will need to pay the GMFV in a lump sum.
PCP finance is good because the monthly payments are lower, and you may be able to afford a vehicle that you wouldn’t have been able to otherwise. It is also more flexible.
On the other hand, if you do want to keep the car, you’ll be faced with a substantial payment and this finance type is only offered as a payment method with specific vehicles.
Get in touch for further information about our car finance or apply online today!