Finance at Nunns Grimsby
We offer you the choice of a Hire Purchase, Personal Contract Purchase or Contract Hire.
These 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 installments to cover part of the cost of a car. Once you have paid off the amount as set out in the agreement, you hand the car back to the owner, who is the financer. Alternatively, if you want to keep the car, you can refinance the remaining cost of it. This is called the balloon payment. It is based on the guaranteed future value (GFV) of the car.
Contract hire is a type of car finance available to companies, sole traders, partnerships and individuals. It's a leasing agreement that helps fund your use of a car or van - whether through business or personal contract hire. As a form of lease, using contract hire means you don't own the vehicle. Instead, your payments cover the costs to essentially borrow or rent it. Once the end of your contract is up, you'll hand back the vehicle.
One of the most straightforward ways to pay for your car is with a personal loan from your bank or building society. Once the money has transferred to your account you can choose any car that suits your budget. The car will be owned by you from the moment you pay for the car. You’ll have no further amounts to pay other than the loan repayments to your lender.
Why Finance Through a Dealership
What is Hire Purchase?
What is Personal Contract Purchase
Why choose car finance?
Here are some of the advantages of choosing to buy your car on finance:
- Get a better car
- Cost is spread out
- Fixed monthly payment
- Can be driving a car on a tight budget
- Improves credit score
- No hassle of selling it on
- Deposit contribution on new cars