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Representative Example*
What is CP?
Contract Purchase is similar to Contract Hire but the business has the option to buy the vehicle at the end of the finance period.
The business pays a small upfront amount to a dealer or lender that delivers the new car (with a full manufacturer warranty) to the business for a contract period of 2 to 5 years.
The business then pays a fixed monthly payment across the period at the end of which it will have the option to pay a balloon payment to take full ownership of the car.
Like PCH, the monthly payments for PCP are often much cheaper than hire purchase or a loan but provides the extra flexibility of ownership if the business requires it.
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35 Months x
£562/mth
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£1,812 |
£21,482 |
£13,095 |
Select This Deal |
9.02% APR Representative
- On the road cash price after FinanceAcar subsidy - £28,997
- Total amount of credit - £27,185
- Option to purchase fee £10
- There may be a credit arrangement and/or a completion fee to secure the finance. These are already reflected in the total payment shown above.
- Excess mileage charges apply if you exceed the agreed mileage and choose not to pay the optional balloon payment
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Representative Example*
Hire Purchase
What is HP?
If a business uses hire purchase to finance the purchase of a car, it is committing to buying the car outright via a secured loan that is paid back monthly across the period (usually between 3 – 5 years).
Monthly payments are therefore much higher than Contract Hire or Contract Purchase.
However, the business will not own the car until the final monthly payment is made at the end of the term because the lender retains ownership until then.
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35 Months x
£883/mth
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£1,812 |
£32,742 |
Not Applicable |
Select This Deal |
8.9% APR Representative
- On the road cash price after FinanceAcar subsidy - £28,997
- Total amount of credit - £32,742
- Unlimited mileage
- Option to purchase fee £10
- There may be a credit arrangement and/or a completion fee to secure the finance. These are already reflected in the total payment shown above.
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