We know that buying a car is a significant investment, which is why we offer a variety of finance options to help you stretch your car payment and stay on top of your budget. Even if you are new to the world of car finance, the finance specialists at Premier MG, Isle of Wight will help by giving you all the impartial advice you need.
The type of finance contracts that we offer include choices such as Hire Purchase (HP), Personal Contract Plans (PCP), Leasing and Contract Hire. The differences between each are significant, with one more likely to suit you than the others. For instance, it is important to keep in mind that each plan has different payment periods, as well as deposit amounts and details regarding ownership.
Browse our website to learn more about the finance plans we have available, and then get in touch to learn more about our offers and selection of new and used MG cars. We look forward to helping you purchase your next dream car.
Personal Contract Purchase (PCP) is an increasingly popular choice for car finance. It offers the best in flexibility at the end of the agreement, together with low, fixed monthly payments.
PCP is perfect if you are opting out of your company car scheme. Your company car allowance can fund your monthly payments, but there is no company car tax to pay.
At the beginning of the agreement your car's guaranteed future value is calculated, based on an agreed mileage and age. This is deferred as a final 'balloon' payment.
The benefits of Personal Contract Purchase
If you choose to buy a vehicle under Hire Purchase (HP) you enter a contract where you would pay for the vehicle in parts. This is calculated by the value of the vehicle along with the interest added and divided into pre-determined amounts. It is different to a traditional loan, this is because you do not own the vehicle until the the loan has been paid off. The debt is secured against the vehicle, this means you are not allowed to sell it until the debt has been cleared.
This means you are borrowing money for the vehicle and the loan is secured against it. When you have paid all the finance owed, the car is yours.
Is it suitable for you? HP car finance would be a suitable option for you when you know you’ll be keeping the vehicle for a while.
The benefits of Hire Purchase