Choosing the right finance option for your car can be confusing. Cut through the jargon and make an informed decision with our simple to follow guide.
Personal Contract Hire (PCH) is a type of long–term rental that will suit you if you’re not looking to buy the car at the end of your contract and won’t need to change the car before the end of the contract. You lease the car for an agreed period of time by making fixed monthly rentals. You also have the option to include a Service, Maintenance and Repair (SMR) package for an additional cost. When the contract expires, you simply return your car*, and you can speak to us about your next car.
Personal Contract Purchase (PCP) is similar to a conditional sale agreement as you will usually pay an initial deposit, followed by monthly repayments. What makes PCP different is that your monthly repayments cover the depreciation of the car, and not its entire value, over the course of the term. Then, when you get to the end of your agreement, you have 3 options:
1. Retain the car – pay off your optional final payment (Guaranteed Future Value - GFV) and own the car
2. Return the car – hand your car back* and decide whether to start another agreement
3. Replace the car – choose a new Vauxhall and use any equity you have as a deposit
Conditional Sale (CS) is a finance agreement under which you will take ownership of the car at the end of the agreement. The loan period is fixed, typically up to 5 years, and the finance agreement is secured against the car being purchased. You can settle the agreement at any time