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Finance
Funding solutions explained Finance, the easy way Here at Cars2, we make the process of financing your car straight forward by offering competitive rates and tailored packages to suit your needs. We provide you with a simple finance application, making the journey to your new vehicle easy and stress-free. Make an Enquiry

Finance Options at Cars2 Ltd

What is Personal Contract Purchase (PCP)?
PCP

What is Personal Contract Purchase (PCP)?

PCP Purchase

With Personal Contract Purchase you can keep your monthly payments lower by deferring part of your finance to the end of your agreement.

The deferred payment at the end of the agreement is also a guaranteed future value (GFV) giving you added security and options at the end of the agreement. This is determined by your annual mileage and any excess mileage at the end of the agreement may incur additional charges. Your interest rate will be fixed for the duration of the agreement. You will also have the ability to make overpayments.

How it works:

- No minimum deposit
- Terms from 24 to 48 months
- Borrow from £3,000 to £250,000
- Guaranteed Future Value (GFV)

In the event that you settle your agreement early and subject to your individual agreement, you may also be entitled to a rebate of interest charges. Further information can be found on your agreement.

How does PCP actually work?​

When you have chosen your vehicle, you will then agree your annual mileage and decide on the agreement term with one of our Business Managers.

We will then determine the Guaranteed Minimum Future Value (GMFV) of the vehicle at the end of the agreement and work out a deposit and monthly amount that works for you.

At the end of your agreement you will then have three options:

Return – Simply return the car the back to us
Retain – Keep the car by paying the optional final payment
Renew – Trade it in for another car

For a quotation, help, or advice contact us and ask to speak to one of our Business Managers.

What are the advantages of PCP?

  • Lower deposit and monthly payments than HP for a comparable car and term
  • Flexibility at the end of the agreement,
    • Hand car back to finance company
    •  Pay OFP and keep car
    •  If value is more than OFP part exchange and use equity as deposit for your next car.
  • Fixed monthly payments throughout the term of the agreement.
  • No depreciation concerns with the Guaranteed Future Value if you wish to walk away at the end.
  • Fixed Optional Final Payment (OFP) when you first take out the contract.

What should you consider when option for a PCP?

  • If you want to buy the car you will need to pay your Optional Final Payment (the Guaranteed Future Value).
  • PCPs can work out more expensive overall than Hire Purchase especially if you enter a second finance agreement to pay the OFP on the car.
  • You will need to agree on an annual mileage allowance at the beginning of your contract and there may be excess mileage charges if you exceed this.
  • If you return the car, it must be in good condition and any damage will result in charges.
  • You won’t be able to sell the car without settling the finance.
  • You won’t own the car until you have made all your repayments.
  • You’ll need to keep the car properly insured, maintained and in your possession until the full value is paid off.

Can I settle my PCP agreement early?

Yes, you can settle your agreement early by asking the finance company to provide you with a settlement figure. The finance company will require you to pay off the outstanding balance including the Guaranteed Future Value and any option to purchase fee, you may also be entitled to a rebate of interest charges. Be aware the difference between what your car is worth may be lower than what you still owe as there may be a difference which is known as negative equity. On the other hand, you may find that at the end of your term your car is worth more than the settlement and Guaranteed Future Value, which means you will have some positive equity to contribute towards your next car.

Find and Finance your new vehicle through PCP
What is Hire Purchase (HP)?
HP

What is Hire Purchase (HP)?

Hire Purchase

Hire Purchase could help you buy your next dream car from Cars2 Limited and help spread the cost.

No minimum deposit, agree monthly payments then just drive it away - and once all the monthly payments have been made, the vehicle is then yours. Your interest rate will be fixed for the duration of the agreement. You will also have the ability to make overpayments.

How it works:

- Borrow any amount from £3,000 - £250,000
- Set your payments to suit your budget
- Repayments from 24 to 60 months
- No minimum deposit required

How does HP actually work?​

Hire Purchase is a way to finance buying a new or used car. You will normally pay an initial deposit and will pay off the entire value of the car in monthly instalments. When all the payments are made, the Hire Purchase agreement ends, and you own the car outright. ​

What are the advantages of HP?

  • Quick and easy to arrange in the showroom.
  • You’ll be able to drive away a car that you may not have managed to buy outright.
  • Unlike a PCP or PCH contract, there are no excess mileage charges.
  • Credit agreements are regulated, which means you will have rights and protection under law.
  • Fixed payments throughout the agreement.

What should you consider when option for a HP?

  • Monthly payments may be higher than some other finance options, such as PCP, as you're paying off the full value of the car.
  • Since you do not own the car until the end of the term, you cannot sell or modify it without the finance company’s permission.
  • You’ll need to keep the car properly insured, maintained and in your possession until the full value is paid off.

Can I settle my HP agreement early?

Yes, you can settle your agreement early by asking the finance company to provide you with a settlement figure. The finance company will require you to pay off the outstanding balance including any option to purchase fee, you may also be entitled to a rebate of interest charges. Be aware the difference between what your car is worth may be lower than what you still owe as there may be a difference which is known as negative equity. On the other hand, you may find that at the end of your term your car is worth more, which means you will have some positive equity to contribute towards your next car.

Find and Finance your new vehicle through HP