Telephone: 01482 323501

Finance at Cleveland Car Sales Dealer, Hull

Hire Purchase or Personal Contract Purchase

We offer you the choice of a Hire Purchase or Personal Contract Purchase finance agreement. Both agreements can be created for car finance deals with no deposit. Which is best for you depends on your individual circumstances. We’ll explain the main differences below to shed clarity on the matter:

Hire Purchase (HP)

Hire Purchase agreements are a type of credit where once you have paid the total loan amount, you own the vehicle. During the loan term, the financer owns the vehicle. Once you repay them in full, ownership passes to you. Typically, Hire Purchase agreements have higher monthly payments because you are repaying the total car amount. With a Personal Contract Purchase, you repay only part of that amount.

Personal Contract Purchase (PCP)

Personal Contract Purchase agreements are a type of credit where you pay off instalments to cover part of the cost of a car. Once you have paid off the monthly payments as set out in the agreement you have the options of either, paying the larger final payment (the Guaranteed Future Value) and owning the vehicle outright, handing the car back to the owner (who is the financer or lender), or should there be any equity, part exhange the vehicle using any equity as a deposit towards a new car.

Cleveland Car Sales are a credit broker and not a lender. We are Authorised and Regulated by the Financial Conduct Authority. FCA No:  658602 Finance is Subject to status. Other offers may be available but cannot be used in conjunction with this offer. We work with a number of carefully selected credit providers who may be able to offer you finance for your purchase.

We do not charge you a fee for our services. Whichever lender we introduce you to, we will typically receive commission from them (either a fixed fee or a fixed percentage of the amount you borrow). A customer may ask for commission disclosure at any time from our initial discussions through to the point when their agreement is set live.