Professional Auto Repair in Bournemouth

If you’ve ever explored finance options before then you’ve probably come across a lot of different terms; hire purchase (HP), Personal Contract Purchase (PCP), Personal Contract Hire, Lease Purchase, Finance Lease, Business Leasing...the list goes on and it can be confusing! Hire Purchase or HP is one of the most popular forms of financing throughout the motoring world and is probably the simplest. With HP you’ll typically need to offer a deposit of 10%, although zero deposit options are available, and the remainder of the vehicle’s cost will be spread evenly in monthly instalments across a period of your choosing, up to 5 years, and will be charged interest, just like any loan, across this period. PCP has become an increasingly popular way to buy vehicles, especially new cars, as the monthly payments can be a lot lower than a personal loan or Hire Purchase. PCP can be a great way of buying a new vehicle if you like to change vehicles on a regular basis as it is keep monthly payments down by deferring a portion of the vehicle’s price into a balloon payment, or larger final payment. As with HP you’ll normally need to offer a deposit, although zero deposit options may be available and you’ll need to work out what your annual mileage will be. Once you’ve decided on your deposit, the remaining balance of the vehicle’s cost will be broken down into two parts; your monthly instalments and the GFV or Guaranteed Future Value.