At Regal Motor Group, with over 20 years experience, we have built strong relationships with specific car finance lenders to ensure we have the best finance rates for our customers, ultimately making us the cheapest option when financing your new car. With the personal relationships we have built we can guarantee high acceptance rates with the lowest APR rates making us the only place you need to come too for your next car. We have a dedicated team of finance experts waiting to help with your enquiry.
PCP Finance (Personal Contract Purchase)
This is fast becoming one of the most popular ways of financing the new car of your choice, simply due to its flexibility. You choose the car, the deposit, how long you want to the contract to run for and the mileage you intend to do. At the end of the contract you have a choice to either buy the car outright for a pre agreed lump sum (The GFV or Final Balloon payment) or hand the vehicle back to the lender with no further obligations. The guaranteed future value (GFV) is calculated by the finance lender before the agreement starts, they take into consideration the mileage allowance and age of the car and calculate how much depreciation the car will suffer in the agreement, they then come up with an optional balloon payment which is payable at the end of the term if you wish to own the car, if not hand the car back free of charge. The reason the customer may pick a PCP contract over a lease is because you can get a settlement figure at any stage of the agreement, if the customers circumstances change during the agreement and they feel they cannot keep up with the payments then they can sell the car for the settlement amount and get themselves out of the contract, where as there is no way of getting out of a lease earlier than the term you have signed up for.
Also known as HP is best way of financing a car that you want to own for the foreseeable future. The way hire purchase works is that you make a fixed monthly payment over an agreed term (between 12 and 60 months) to the finance lender, after which you have full ownership of the vehicle. If you want to own the asset after but do not have the cash sitting in your bank account then HP is the best way to go, there is no mileage limit or balloon payment like the PCP but is more expensive per month, once again the term and deposit is also decided by the customer.
Similar to PCP, LP is a monthly payment with a balloon payment at the end, the only difference is the balloon payment is not optional. The deposit and term of the contract is once again decided by the customer, typically a finance lender would rather the customer take a LP on a vehicle if their credit isn't strong enough for the PCP. In most cases a LP can be slightly cheaper per month than a PCP as the RV is usually higher, knowing that the customer has to pay it.
A lot of people get confused between the difference of lease and PCP, with a lease agreement you can only lease a brand new car. The lease company owns the car when you lease the car, where as on a PCP the customer owns the car. Similar to the PCP the customer decides on the car, deposit and length of time they would like to lease the car for, at the end of the agreement they give the car back to the lease company with no option of a balloon payment to own. Because the car is owned by the lease company throughout the agreement you’re not allowed to customise the car in anyway, also there is no way of settling the agreement early, you must have the car for the duration of the term agreed. Leasing can be cheaper per month than a PCP on a brand new car, its all dependant on the current deal when it comes to leasing, but a deposit is always required.