Click me
Transcribed

Car finance explained

Number Stoneacre Moior Gruup CAR FINANCE EXPLAINED We explain the differences between the sometimes confusing finance terms, such as HP, PCP & PCH that rather sound like sauce names. DID YOU KNOW? Research by peer-to-peer lender Zopa found out According to Finance & Leasing Association. that.. 9 out of 10 £160 UK buyers are confused by car finance The average cost of running a car per month options. and double that if the car is on finance. up to £11,000 Fuel This much the average buyer can save Is the major expense, costing Brits on during their lifetime by comparing different average, £67.63 a month. financial deals. 1 HIRE PURCHASE (HP) £ £ £ You can finance a new or used car with this option. The process 1. Start with initial deposit or a part-exchange that can act as a deposit. 2. Pay monthly payments with a fixed interest rate that last from 36 to 60 months (3 to 5 years). 3. When the payments are complete you own the car. PERSONAL CONTRACT PURCHASE (PCP) With this finance option you have three choices: 1. Pay the balloon or a guaranteed future value (GFV) payment to own the car. 2. Return the car to the dealer. 3. Part-exchange the car for a new one. PERSONAL CONTRACT HIRE (РCH) As the name implies, you essentially hire a car. Advantages: • Sightly lower monthly payment • Can change the cars more frequently when compared to PCP and HP Disadvantages: • No option to own the car • Mileage allowance PERSONAL LOANS 4 An excellent option if you want to own the car NOW. Advantages: • The loan is not secured against a car which means it 3. can't be repossessed Disadvantages: • Poor credit history will affect if you're eligible for the loan COMMERCIAL BUYERS BUSINESS CONTRACT HIRE (BCH) This option is best suited for companies - the latest car can simply be hired between 24 to 48-month period. Advantages: For one fixed monthly payment, these costs are included: • Leasing service, maintenance, servicing & road tax Disadvantages: • Additional costs if damage is above Fair Wear and Tear FOR MORE INFO VISIT STONEACRE.CO.UK 2. 3

Car finance explained

shared by demiva on Jun 23
1 view
0 shares
0 comments
This Stoneacre infographic explains different types of car finance, what's the process like, as well as advantages and disadvantages of each type.

Publisher

Stoneacre

Designer

Stoneacre

Category

Business
Did you work on this visual? Claim credit!

Get a Quote

Embed Code

For hosted site:

Click the code to copy

For wordpress.com:

Click the code to copy
Customize size