Car Loans Explained

You can pay for bad advice. What can look like a cheap rate does not always mean the most cost effective method of funding.
Contact us on 0800 860 0627 and speak to one of our experienced finance consultants for independant advise or Apply Online

Hire Purchase - HP

Hire Purchase is the most traditional method of financing a vehicle. You simply finance the full capital cost of the vehicle over a suitable period of time. You are responsible for every aspect of ownership and would normally have to pay a fairly large initial payment (typically 10% to 20%) subject to contract.

Personal Contract Purchase – PCP

Designed for the consumer PCP reduces your monthly payment by ‘offsetting’ a future value of a vehicle (GFV). This value is guaranteed by the finance company so at the end of the agreement you have a number of choices. You can either hand it back to the finance company with nothing to pay (subject to mileage and condition), pay the GFV and keep the vehicle or part exchange the vehicle for a new one. Any profit between the part exchange price and GFV is yours to keep! Initial payments are generally low on this type of agreement. If required a maintenance contract including servicing, tyres, breakdown etc can be added for to your monthly payment for complete peace of mind.

Personal Contract Hire – PCH

Instead of participating in the potential risks of ownership you simply pay a fixed monthly payment for an agreed period of time, geared to the annual mileage you would normally expect to cover. At the end of the contact you simply hand the vehicle back to the funder and walk away (subject to mileage and condition). Like PCP initial payments are generally low and a maintenance package can be added if required.

Don't just settle for the Local Dealers Car Finance or a Loan from your bank. Whether you have the car in mind or want to know how much you can borrow - Call: 0800 860 0627 or Apply for a Car Loan from GBCarLoans.com and you could be pleasantly surprised.