What are PCP and HP Finance?
PCP is a Personal Contract Purchase.
A PCP deal is setup so that you only pay back a portion of the car’s value over the Finance term, with and final optional payment at the end of the term. It also features an annual expected mileage factored into the deal.
At the end of the term you will have three options:
You can decide to own the car by paying the optional payment. This can be paid asa single amount or refinanced to suit you.
You can part exchange the vehicle to pay off the finance and put any additional amount towards a new vehicle.
You can simply hand back the vehicle at which point – assuming the vehicle is in good condition – you will not be obligated to continue the payments and released from the contract.
We will always be there to help you work out the best option and provide any other information you may require.
HP is a Hire Purchase agreement.
A HP agreement factors in the full price of the vehicle in the finance term, including any interest. At the end of the agreement the vehicle is fully owned by you and you are no longer obliged to continue payments with the finance company.
This option is most widely taken up by people who want to own their vehicle at the end of the term rather than change into a newer vehicle.
What if I don’t get approved?
We work with a range of other Finance companies who are able to help people who cannot regularly get approved. In many cases there companies may charge a slightly higher rate of interest, however we would never want to recommend any finance option that did not work in the best interests of our customers.
We will always endeavour to ensure you get approved by matching you with a vehicle that you can afford the repayments on.
Who are you regulated by?
R T Rate Limited are authorised and regulated by the Financial Conduct Authority for consumer credit purposes. We are a broker for finance and not a lender.
We can introduce you to a limited number of lenders and finance products to assist with your purchase, who may pay us for introducing you to them. FCA number: 308827
You can check this on the FCA’s website www.FCA.org.uk/register or by contacting the FCA on 0300 5008082.