Hire Purchase Finance Representative Example
Cash Price £10,995.00. Total Deposit £2,199.00. Total Amount of Credit £8,796.00. First Payment of £190.20, Followed by 58 Payments of £190.20, with a Final Payment of £191.20.Duration of Agreement is 61 Months. Option to Purchase Fee £1.00.Fees are included in the payments shown. Interest Charges of £2,616.00. Total Amount Payable £13,612.00.Annual Fixed Interest Rate of 5.85%. Representative APR 10.9%.

HIRE PURCHASE & PCP

Available at Sandy Thain

Sandy Thain Car Sales offer you a wide array of funding options to make buying your next car as affordable as possible.

We work closely with some of the biggest names to ensure you get the best possible deal.

Sandy Thain Car Sales provide a wide range of finance facilities which are described below and fully integrated into our web site.

From the comfort of your own home you can view all the available finance products for your next vehicle and generate your own personalised quotations

by changing the deposit, term and annual mileage.

IMPARTIAL ADVICE

Sandy Thain Car Sales Limited is an appointed representative of ITC Compliance Limited which is authorised and regulated by the Financial Conduct Authority (their registration number is 313486).

Permitted activities include acting as a credit broker not a lender.

We can introduce you to a limited number of finance providers. We do not charge a fee for our Consumer Credit services. We do not act as a financial adviser, or fiduciary. We act in our own interest, whichever lender we introduce you to, we will typically receive commission from them based on either a fixed fee or a fixed percentage of the amount you borrow. Any and all commission amounts will be fully disclosed to you as part of your sales journey. You will be required to give your fully informed consent to our receipt of this commission. By doing this, you acknowledge that you understand our role as a credit broker, and that we will receive a financial incentive if you take out a loan from a lender that we introduce you to.

All finance applications are subject to status, terms and conditions apply, UK residents only, 18s or over, Guarantees may be required.

Below is an explanation of PCP & HP.

PERSONAL CONTRACT PURCHASE (PCP)

Personal Contract Purchase (PCP) lets you spread the cost of your vehicle by paying fixed monthly repayments over 36 to 48 months to suit your budget. At the end of your finance agreement, you pay a final balloon payment which makes the monthly repayments lower than on a Hire Purchase agreement. No minimum deposit is required, so you can choose to either finance the vehicle entirely, or put down a deposit to reduce the monthly payments.

At the end of your agreement, you have 3 options: retain, return or replace the vehicle.

• Retain: you keep the vehicle by paying the balloon payment and option to purchase fee at the end.
• Return: you hand the vehicle back, meaning you don’t pay the final balloon payment.
• Replace: you part exchange the vehicle at a local dealership to get a new vehicle.

Good for you, if:

✔  you want the option to put down a deposit (but don’t have to)

✔  you want lower monthly repayments in comparison to a HP

✔  you want to spread your repayments over 36 to 48 months to suit your budget

✔  you want flexibility when it comes to your end of agreement options

✔  you’re happy to pay a larger balloon payment at the end of your agreement if you decide to keep the vehicle

✔  you can stick to your expected annual mileage (between 6,000 – 28,000 for cars and 3,000 – 10,000 for motorcycles)

Remember:

• Finance is subject to affordability checks and is only available to UK residents aged 18 and over.
• If you don't keep up with your repayments, the vehicle may be repossessed. 
• You don’t own the vehicle until you’ve fully repaid the finance including the balloon payment and option to purchase fee at the end.
• Additional charges may apply if you exceed your agreed annual mileage and don’t keep the vehicle in good condition. 

HIRE PURCHASE (HP)

Hire Purchase (HP) lets you spread the cost of your vehicle, plus any interest and the option to purchase fee at the end, by paying fixed monthly repayments over 12 to 60 months to suit your budget. No minimum deposit is required, so you can choose to either finance the vehicle entirely, or put down a deposit to reduce the monthly payments.

When you have paid off the finance agreement, and settled the option to purchase fee, the vehicle becomes yours.

Good for you, if:

✔ you want the option to pay a deposit (but don’t have to)

✔ you like equal repayments, which can be spread over 12 to 60 months to suit your budget

✔ you don’t want any mileage restrictions

✔ you want the option to pay off the full agreement early

✔ you want to own the vehicle at the end

Remember:

• Finance is subject to affordability checks and is only available to UK residents aged 18 and over.
• If you don't keep up with your repayments, the vehicle may be repossessed.
• You don’t own the vehicle until you’ve fully repaid the finance and the option to purchase fee at the end.