Finance Options | Croydon, London | McCarthy Cars

Types of car finance – your options

Just as motorists choose different styles and types of vehicles, they also need tailored finance that suits their needs and budget.

If you'd prefer to check whether you are able to get finance, you can can find out by completing this Finance Check Form.

The main car finance options you have with Approved Used cars are:


Personal Contract Purchase (PCP)

Many drivers choose a PCP plan for its flexibility – before, during and after the actual finance term. If you are unsure whether you want to own or lease a car, PCP gives you more time to make up your mind. It also gives you the freedom to change vehicles on a regular basis.

An initial deposit is needed, followed by typically 18-42 months of regular payments. Part of the amount is deferred to the end, and this is known as a 'balloon payment'. It prevents any depreciation in the car's value from putting your lease into negative equity.

At the end of the agreement, you have three options. Return the car with nothing more to pay, make the final balloon payment to own the vehicle, or use it in part exchange for another model.

Hire Purchase (HP)

The traditional set-up of a Hire Purchase agreement is for those who prefer to keep things simple. It's designed for customers seeking to own their chosen vehicle at the end of the finance plan.

On Hire Purchase, you make fixed monthly payments for between 12 and 60 months, depending on the plan. Deposit amounts are typically low, and in some cases there is no deposit required. At the end of the term, you take full ownership of the car.

Personal Loan

Those with a good credit rating can go to their bank or building society for a Personal Loan. Many of these provide specialist car loans with competitive interest rates. You can then use the loan to purchase the car you need, paying it back separately and enjoying full access to the vehicle from the outset. 

You are personally responsible for repaying the loan, as it is unsecured lending. For other types of car finance, the loan is secured against the vehicle itself.

Get in touch

The team at McCarthy Cars is here to talk you through different types of car finance. You can get a quick finance quote online, or contact us for more information.

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