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Which finance option is best for you?

At ProSportsCars we are proud to offer PCP (Personal Contract Payment), Standard Contract Purchase with Balloon and HP (Hire Purchase) finance plans to our customers. We understand it may be a difficult decision to make when it comes to buying your car on finance… so we thought we’d offer some advice to help ease the decision.  

The most important question is whether you want to own the car you’re buying outright at the end of the finance agreement. While a HP scheme covers the entire purchase price of the car, PCP does not unless you make the optional ‘final payment’, which covers the remaining value of the car after your payment term has elapsed. 

PCP

If you plan to regularly change your car, a PCP could suit you very well. A four-year (48-month) term is a popular length of PCP and is a common interval for motorists to consider a change of car. 

At the end of the agreement you have three options: 
1. Retain the car – Simply pay the Guaranteed Future Value, and the car is yours. 
2. Renew the car – Choose another car, using any excess part exchange value that is above the Guaranteed Future Value towards your deposit. 
3. Return the car – There’s nothing more to pay if the car is in good condition and within the agreed mileage terms – we base our prices on 8,000 miles per year, but this can be extended if needed. 

Standard Contract Purchase with Balloon 

Standard Contract Purchase with a Balloon is similar to a PCP contract but with lower monthly repayments since a significant repayment of the amount of credit is deferred to the final payment. This final amount is known as the balloon payment and is calculated by forecasting the value of the car at the end of your agreements. The main difference between Standard Contract Purchase with a Balloon and Personal Contract Purchase is that the balloon payment must be paid by you in full. 

Your finance quotation will include the balloon payment. The interest rate is fixed so you’ll know exactly how much you will repay throughout the term of the agreement.  

To retain the car, simply pay the balloon payment and the car is yours. If you wish to renew the car, you can use any equity towards your deposit on another car of your chose. A benefit of this finance option is you will not be limited or bound by mileage conditions. 

Please note that only when all payments under the agreement have been made, including the balloon payment, do you become the owner of the vehicle.  

HP 

If you choose to pay for your car with a Hire Purchase (HP) agreement, you will normally pay an initial deposit and will pay off the entire value of the car in monthly instalments. We base our prices on a 60-month contract. When all the payments are made, the HP agreement ends, and you own the car. Once you’ve made your final monthly payment, you’ll have full ownership of the car. 

Monthly payments may be higher than some other finance options, such as PCP, as you’re paying off the full value of the car. Please note, you won’t own the car until you have made all of your repayments and, you won’t be able to sell the car without settling the finance. 

All of our cars come with a £0 deposit, if you wish to place a deposit it will help reduce your monthly repayments. 

If you are interested in buying your car with ProSportsCars, you can click here and apply for finance.  

Your finance proposal will be subject to a financial credit check by one of our carefully selected lenders and someone from our dedicated sales team will be able to quickly and accurately get back to you with a decision from our finance providers. Please note our lenders perform a hard credit search which may affect your credit rating. 

If you would like more information, please contact us and one of our friendly sales advisors will be in touch.

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