Finance Explained

A better way to buy a car

  • Finance Explained
  • Why dealer finance
  • Why apply
  • Car PCP FCA
  • Car HP FCA

Why Should I Choose Car Dealer Finance?

Our car finance solutions are tailored around you. Spread the cost of your next car purchase with finance from CULLODEN CARS. Financing a car can be confusing, but don't worry as our sales teams are trained by the Specialist Automotive Finance (SAF) to Expert Level which means we can answer any questions you may have. We will be able to explain the Hire Purchase and PCP car finance process to you in simple terms and layout all of the options available to you. In the meantime, please look below for an explanation on our HP and PCP products.

What is HP & PCP Used Car Finance

Buying a car is often a significant financial undertaking, so much so it is likely to be the second-largest expenditure in a lifetime after property. At CULLODEN CARS we fully appreciate this level of commitment, that's why we work with a range of lenders to give you the best possible deals that are suitable for your financial needs.

We also believe that buying a car should be a fun and exciting experience, so whilst working hard to ensure competitive rates, we also work tirelessly to ensure that the finance process from start to finish is effortless.

Whatever your needs and requirements, at CULLODEN CARS, we are perfectly placed to help you with used car finance.

So, you've seen your ideal car? No problem, with our HP or PCP finance plans, your next car could be more in reach than you think.

Let's take a look at two finance plans that could be available to you.

HP Finance Explained

HP finance, known as Hire Purchase, means that you will effectively hire your used car from a lender until the car has been paid for in full. One of the most common forms of used car finance, the loan is secured against the used car itself and you won't own the car fully until your final payment has been paid.

Choosing a HP finance agreement for purchasing your next used car, will give you the ability to:

  • 1. Spread out the cost over a repayment term to suit your budget
  • 2. Choose if you want to put down a deposit at the start of the term
  • 3. Allow you to own the vehicle outright at the end of the agreement

At the end of the term and once all payments have been made, the car will be yours and you become the legal owner. Furthermore, you can pay off any outstanding finance at any time throughout the term by asking for a settlement figure from the finance house, lender or speaking with our sales team direct.

With Hire Purchase agreements, you are not restricted to a certain number of miles per year, meaning you can drive thousands of miles with no fear or repercussions and penalties. However, it is worth bearing in mind that your HP monthly payments will more than likely be larger than they potentially would be on a PCP used car finance plan.

Like with any finance plans, ensuring you fully understand the terms and conditions and risks associated with both is very important. When you visit CULLODEN CARS, we would be more than happy to assist you with your used car finance.

PCP Finance Explained

A highly popular form of used car finance, you've no doubt heard of PCP before. Short for Personal Contract Purchase, PCP's are highly popular thanks to the level of flexibility they can afford a consumer over a traditional Hire Purchase agreement.

When signing up to PCP finance plan you'll most likely pay an initial deposit but not always, this is then subsequently followed by fixed monthly payments. However, you won't automatically become the owner of the car when your finance term comes to an end. At this stage, you'll most likely have three options:

  • 1. You can pay the outstanding finance amount and own the vehicle
  • 2. Part exchange the vehicle with Top Car Inverness and start another new agreement on a different vehicle.
  • 3. Return the car to the finance company

The amount you pay over the course of a PCP term is dedicated by several factors. These include;

  • 1. Deposit amount
  • 2. Mileage
  • 3. Cost of the used car
  • 4. The agreement interest rate
  • 5. The lenders predicted future value of the car at the completion of the finance term, also known as Guaranteed Minimum Future Value or GMFV.

Monthly payments on PCP will most likely be less than an HP deal, however, be aware that mileage limits apply. If you were to exceed the mileage stated in your term, expect to incur financial penalties.

If you are a careful driver that likes to take care of your car, you driver relatively low miles and like to frequently change your cars, say every three years, then a PCP finance plan for your next used car could well be the way forward. Our Sales Team will be able to discuss your needs in detail.

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