A VIDEO GUIDE ABOUT CAR FINANCE | PCP vs HP vs CONTRACT HIRE & LEASING | WHAT TO CONSIDER скачать в хорошем качестве

A VIDEO GUIDE ABOUT CAR FINANCE | PCP vs HP vs CONTRACT HIRE & LEASING | WHAT TO CONSIDER

This guide compares the various types of car finance available to you – PCP, Hire Purchase, Car Leasing & Contract Hire ------ ▶️ ON OUR WEBSITE & "MONEY MATTERS" BLOG Car Finance: https://www.solution-loans.co.uk/car-... How to Buy a Used Car using car finance: https://www.solution-loans.co.uk/blog... 6 reasons why people use car finance: https://www.solution-loans.co.uk/blog... Why young drivers are leasing cars: https://www.solution-loans.co.uk/blog... ------ ▶️ SOCIAL Like us on Facebook:   / solutionloansuk   Follow us on Twitter:   / solutionloansuk   Follow us on LinkedIn:   / solution-loans   Follow us on Instagram:   / solutionloans   Website: https://www.solution-loans.co.uk/ Subscribe to our YouTube channel: https://bit.ly/solutionloansYT ------ ▶️ VIDEO TRANSCRIPT If you’re looking for a new car, there are a myriad of ways to finance it - from bank loans, to finance packages offered by the dealership, to hire purchase agreements. In recent years there has been a huge growth in the number of Hire Purchase (HP) and Personal Contract Plans (PCP). Both of them allow people who would not otherwise be able to afford a new car to drive the vehicle of their choice for a series of monthly payments regardless of their credit history. Under HP, a motorist chooses their new vehicle and it is bought from the dealership by the finance company. The lender then owns the car and the motorist hires it by making a series of monthly payments. Once the final monthly payment is made, the lender transfers ownership of the vehicle to the motorist who is then free to keep it or sell it. HP is generally more expensive than PCP be-cause the motorist will eventually own the vehicle while under PCP the motorist has to make a final ‘balloon’ payment to gain ownership of the car. A PCP is a leasing arrangement between the borrower and the finance company. The motorist chooses a new vehicle and the lender then buys it from the dealership. The motorist will decide how big a deposit he or she can afford and then the vehicle is leased back in return for a series of monthly payments. The size of the initial deposit will increase or reduce the size of the monthly payments. At the end of the leasing agreement - provided all the monthly payments have been made - the motorist has the option of handing back the vehicle without incurring any additional financial cost, part exchanging it for a another car under a new PCP deal or purchase it outright with a final ‘bal-loon’ payment. The size of the balloon payment is made clear at the start of the leasing agreement. PCP is normally cheaper than HP because the motorist is not working to own the vehicle unless he or she chooses to make the final balloon payment. There are other advantages to PCP, not least that many arrangements include vehicle maintenance. Buying, running and maintaining a new car can be an expensive choice that many people simply cannot justify for a number of reasons. HP and PCP agreements bring the possibility of driving a new car to millions more people than bank loans or dealership finance by reducing the monthly cost to a more affordable level. You may not want to own a car outright or you may have a less-than-perfect credit history meaning that bank loans and dealership finance are unattainable. In both of these cases, PCP and HP might help you drive the new car of your choice. Choosing one of these schemes will free you to concentrate on finding the right car for you. You can choose your own dealership (as long as it is reputable) or you can use one of the finance company’s preferred network of dealers. You don’t even need a part exchange vehicle or deposit because many finance companies will fund the entire purchase of your new car. Both PCP and HP are credit agreements and you should ensure that you can afford the monthly payments before entering into one of them. Because you don’t own the car outright until the final or balloon payment is made, if you fail to keep up with repayments then you could end up having the car repossessed. The typical interest costs of both of these forms of finance are higher than taking out a personal loan and buying the car outright. ------ ▶️ ABOUT SOLUTION-LOANS.CO.UK Solution Loans is a leading UK online credit broker. We started in 2005 with the express mission of providing people with information and online tools to help them make smarter financial decisions. We're fully authorised and regulated by the Financial Conduct Authority (FCA). Our credit broking service is FREE to use; there are NO UPFRONT FEES. In most situations the deals you will get will be AS GOOD AS GOING DIRECT, although you should also have more choice than if you went direct.