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At Harvey Cooper Cars, we aim to make your vehicle purchase a smooth and stress-free experience. That’s why we offer a range of finance packages, all of which are arranged in-house and can be tailored to suit your budget. When you’ve chosen your ideal car, simply sit down with our sales advisors and we’ll talk you through the options, ensuring your plan offers the best possible rates.
Below we outline the finance products available to you to fund your new car purchase. Our team are available to assist with any questions, whether up front or throughout the journey should you wish to purchase online.
What is Personal Contract Purchase (PCP)?A Personal Contract Plan (PCP) enables you to pay for your vehicle in affordable monthly instalments over an agreed period of time. At the end of the term, you’ll make a final payment based on the estimated value of your car. This flexible solution also enables you to change or upgrade your vehicle during the contract period. What makes PCP different to Hire Purchase (HP) is that your monthly instalments are paying off the depreciation of the car, and not its entire value, over the course of the term. When you get to the end of your agreement, a balloon payment must be made if you wish to keep the car.
When you have chosen your vehicle, you will then set your annual mileage and decide on your preferred 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 to us Retain – keep the car by paying the optional final payment Renew – trade the car in for another vehicle
What are the advantages of PCP?
Monthly payments on a car financed by PCP are usually lower than if your car is financed by a Hire Purchase agreement.
If you decide not to buy the car at the end of your agreement, you can simply walk away once all payments have been made.
Similar to PCH, you can drive away a new or used car every few years (dependent on the chosen term) without worrying about selling it on.
If, at the end of your agreement, the car is worth more than the Guaranteed Future Value then you can use the equity towards a deposit on a new car.
What should you consider when option for a PCP?
If you want to buy the car at the end of the agreement you will need to pay your final balloon payment (the Guaranteed Future Value).
Similar to PCH, you will need to agree on a mileage allowance at the beginning of your contract and there may be excess mileage charges if you exceed it.
You won’t be able to sell the car without settling the finance.
You won’t own the car until you have made all of 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?
You can normally settle your agreement early by asking the finance company to provide you with a settlement figure. However, you will be required to pay off the difference between what your car is worth, and what you still owe – a sum 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 Guaranteed Future Value, which means you will have some positive equity to contribute towards your next car.
What is Hire Purchase (HP)?A Hire Purchase (HP) package offers a straightforward solution to covering the cost of your vehicle. Simply select the term of your agreement – between two and five years – and make fixed, regular payments over that period. Popular with our customers, Hire Purchase is a great way to finance a new or used car. You will normally pay an initial deposit before paying off the entire value of the car in monthly instalments over the duration of the agreed term. When you have made all of your payments, the Hire Purchase agreement ends, and you own the car outright.
How does HP actually work?
This simple package offers a straightforward solution to covering the cost of your vehicle. Select the term of your agreement – between two and five years – and make fixed, regular payments over that period. 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.
HP FINANCE
What are the advantages of HP?
You’ll be able to drive away a car that you may not otherwise have been able to buy outright.
Unlike a PCP or PCH contract, you won't need to estimate your mileage at the start of your Hire Purchase agreement, so you'll avoid excess mileage charges.
Once you’ve made your final monthly payment, including the option to purchase fee, you'll have full ownership of the car.
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.
You won’t be able to sell the car without settling the finance.
You won’t own the car until you have made all of 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 HP agreement early?
The short answer is yes – you can end your finance early with a settlement fee. While each finance agreement differs, you are usually able to do this once you are two-thirds of the way through your term. The settlement fee covers the cost of any remaining unpaid instalments and interest payments and once it is paid, the car is yours.
