Finance

Please be aware we are a credit broker, not a lender.

VAN PERSONAL CONTRACT PURCHASE

Personal Contract Purchase (PCP) allows a more flexible repayment process. Unlike Hire Purchase (HP) the repayments cover only the depreciation of the vehicle resulting in lower monthly repayments. At the end of the repayment term the payee can decide to pay the remaining cost of the vehicle (ballon payment) and thus own the vehicle, return the vehicle or use it as equity towards the purchase of another vehicle.

Key features:

Set term usually between 24 and 48 months
Lower monthly payments compared to Hire Purchase
Payments based on the van’s depreciation rather than its full value
Mileage limits apply
Options at the end of the agreement: return the van, pay a balloon payment to keep it, or part-exchange for a new vehicle

HIRE PURCHASE

Hire Purchase (HP) allows for the full value of the vehicle to be broken down into monthly payments. Usually an initial deposit will be paid followed by equal monthly payments. Once the repayment term has been completed the vehicle is owned by the payee.

Key features:

No mileage restrictions
Higher monthly payments compared to other options
Flexibility to settle the agreement early
No balloon payment at the end
Ownership of the van upon completion of payments

LEASE PURCHASE

Lease Purchase (LP) allows for the full value of the vehicle to be broken down into monthly payments. Usually an initial deposit will be paid followed by equal monthly payments over a set period of time. Once the repayment term has been completed the vehicle is owned by the business.

Key features:

No mileage restrictions
Higher monthly payments compared to other options
Flexibility to settle the agreement early
No balloon payment at the end
Ownership of the van upon completion of payments

BUSINESS PERSONAL CONTRACT PURCHASE

(PCP) the business will make the repayments

Business Personal Contract Purchase allows a more flexible repayment process. Unlike Hire Purchase (HP) the repayments cover only the depreciation of the vehicle resulting in lower monthly repayments. At the end of the repayment term the business can decide to pay the remaining cost of the vehicle (ballon payment) and thus own the vehicle, return the vehicle or use it as equity towards the purchase of another vehicle.

Key features:

Set term usually between 24 and 48 months
Payments based on the van’s depreciation rather than its full value
Mileage limits apply
Options at the end of the agreement: return the van, pay a balloon payment to keep it, or part-exchange for a new vehicle

FINANCE LEASE

This is a popular option for businesses. Monthly payments are made over a set period of time allowing use of the van without ownership transferring to the business. The lease would come with the option to extend the lease or return the vehicle at the end of the lease term.

Key features:

Terms usually between 24 and 60 months
Tax-deductible payments

Flexible agreement periods