What is Personal Contract Purchase (PCP)

Personal Contract Purchase (PCP) is a finance product that allows you the opportunity to buy a new or a used car.

It is similar to a Hire Purchase agreement as you will usually pay an initial deposit, followed by monthly instalments over a term typically between 18 to 48 months.

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. Then, when you get to the end of your agreement, there is a final, balloon payment that must be made if you want to keep the car. The balloon payment is often referred to also as the Guaranteed Future Value (GFV).

Please note We Are A Credit Broker, Not A Lender: Finance Representative Example Northridge Personal Contract Purchase (PCP) - Example based on a KIA NIRO 3 PHEV S-A (2022) Cash Price of £31,995.00, borrowing £28,795.50 with a £3,199.50 deposit at a representative APR of 11.4%. Fixed-rate of interest 5.92% Duration of Agreement 49 months First payment £502.35 47 monthly payments £502.35 Optional final payment £14,455.00 Cost of credit £9,762.30 Total amount payable £41,767.30 Purchase Fee* £10.00 Annual mileage limit 10000 miles Excess mileage charge 0p/mile **Included in final payment

What is Hire Purchase (HP)?

​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.

Please note We Are A Credit Broker, Not A Lender: Finance Representative Example Northridge Hire Purchase (HP) - Example based on a KIA SPORTAGE GT-LINE ISG Cash Price £29,995.00 Total Deposit (Details) £2,999.50 Total Amount of Credit £26,995.50 Agreement Term 60 months Annual Mileage 10,000 miles Option to Purchase Fee £10.00 First Payment £584.73 58 Payments £584.73 Final Payment £594.73 Interest Charges £8,088.30 Annual Fixed Interest Rate 5.99% APR 11.4% Total Amount Payable £38,093.30

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Gillanders Motors Ltd is registered in Scotland under company number: SC200277. Registered office address: Blackhouse Industrial Estate, Peterhead , Aberdeenshire , AB42 1BN.

Gillanders Motors Ltd (FRN 533402) is an appointed representative of The Compliance Guys Ltd which is authorised and regulated by the Financial Conduct Authority (FRN 941360). We act as a credit broker not a lender. We work with a number of carefully selected credit providers who may be able to offer you finance for your purchase. (Written Quotation available upon request)

Whichever lender we introduce you to, we will typically receive commission from them (either a fixed fee or a fixed percentage of the amount you borrow) this will not affect the rate you are offered or the amount you will pay back. The lenders we work with could pay commission at different rates. All finance is subject to status and income. Terms and conditions apply. Applicants must be 18 years or over. We are only able to offer finance bproducts from these providers.

Gillanders Motors Ltd are registered with the Information Commissioners Office under registration number: Z6960676

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