18/09/2024
Looking for the right car finance option? Let us guide you!
P*P allows you to buy a car with borrowed money and pay it back in monthly instalments. But unlike Hire Purchase, you don’t pay the full price of the car in instalments. Instead, you pay the difference between the car’s original price and its predicted value at the end of the agreement.
The contract is based on a Minimum Guaranteed Future Value (MGFV) which calculates the car’s projected worth at the end of the contract. You'll pay a deposit, fixed monthly payments, and a final balloon payment to keep the car at the end of the agreement.
HP
With Hire Purchase, you'll borrow money, pay a deposit, and make equal monthly payments with interest until the car is fully paid off. You won’t have legal ownership until the final payment is made, and you'll need to keep up with payments or risk losing the car.
As the registered keeper, you’re responsible for insurance, servicing and maintenance. But remember, you can't sell the car without the finance lender's permission. Let us help you choose the perfect finance option for your dream car!
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