Finance Explained at FJ Chalke & Vale Motors

Find the best finance option for you.

What is PCP?

Personal Contract Purchase is similar to a loan but more flexible as part of the cost is deferred until the end of your contract. The deferred payment is known as the optional final payment. At the start of the contract the optional final payment is set for the car, this will be based upon your chosen term and approximate annual mileage. You can then select the deposit you wish to pay and then make monthly repayments based on the outstanding loan balance, minus the optional final payment.

At the end of the monthly repayment period you’ll have three options:

Option 1

You can pay the optional final payment and the car is yours

Option 2

You can hand the car back to us, with nothing further to pay (subject to mileage and fair wear and tear)

Option 3

You can part exchange the car, using any equity over and above the optional final payment as deposit on your next car. Although equity is anticipated, this cannot be guaranteed.

What is PCH?

Personal Contract Hire is preferred by most people who would prefer to lease a car, rather than own one. You pay an initial upfront advance rental (amount dependent on size of monthly rental), usually the equivalent to three, six or nine monthly rentals. You then pay a fixed monthly rental fee (plus VAT) and in return have the right to use your chosen car over a pre-agreed period and mileage.

At the end of this period you simply return the car without further cost, providing it has not exceeded the agreed mileage and the condition is reflective of its age and mileage. There is no option to own the car at the end of the contact.

What is HP?

Trade in your existing car and put this towards your initial deposit, or select the deposit you wish to pay, if any at all, then we can structure the contract to your requirements. Select a term and make regular monthly repayments to repay the balance, it’s that simple. As your interest rate is fixed, you have a guaranteed monthly payment, allowing you to budget.

Once all the monthly repayments have been made, you will own the car.

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