Car Finance Explained

A short guide to three common ways of financing a used car in the UK. It is general information, not financial advice, and not every option is available on every vehicle.

PCP (Personal Contract Purchase)

You usually pay a deposit, then lower monthly payments over the agreed term, because you are not paying off the whole value of the car. At the end there is an optional final payment. You can then:

• pay the optional final payment to keep the car, or
• return the car, subject to the conditions of your agreement.

Check the contract for mileage limits and charges for excess mileage, and for charges if the car is damaged beyond fair wear and tear.

Hire Purchase (HP)

You usually pay a deposit, then fixed monthly instalments over the term. The car belongs to the finance company until you have made all the payments, including any final payment or purchase fee that your agreement requires. Once those are paid, ownership passes to you.

Conditional Sale

Also fixed payments over the term. Ownership passes to you when all the payments have been made and the other terms of the agreement have been met.

Before you agree

• Total cost and APR. Compare the total amount payable and the APR, not just the monthly payment.
• Paying off early. You can usually settle an agreement early. Ask the lender for a settlement figure first.
• Missed payments. Contact the lender straight away if you think you may struggle to pay. Missed payments can lead to charges, affect your credit file and may put the car at risk.

Our finance calculator

Where a car is available with a finance calculator on its page, the figures come from a third-party calculator. They are indicative and subject to status. Finance is subject to status, lender approval and the terms of the agreement.

Our role

Simsek Quality Car Sale is authorised and regulated by the Financial Conduct Authority (FRN 779598). We are a credit broker and not a lender. We work with a number of carefully selected credit providers who may be able to offer you finance for your purchase. Finance is subject to status.

If you take out finance through us, Simsek Quality Car Sale will receive a commission for introducing the transaction to the lender. The amount is available from us on request. This will be disclosed during the process; the exact stages vary by lender.

This wording follows the disclosure shown in our finance calculator.

Questions?

Ask Hasan about a car or how finance could work for you. Call 07807 700 970, message us on WhatsApp or use our contact page.