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 Funding solutions explained

CUPRA finance at West End Garage

Here at West End Garage, we make securing your ideal CUPRA easier with a selection of flexible finance plans that can be tailored to suit your needs and budget. Adjust the term length, deposit and mileage allowance to customise your package. Find out more about our two most popular options - Personal Contract Purchase (PCP) and Hire Purchase (HP) - below. Tailor your finance

CUPRA Finance at West End Garage

What is Personal Contract Purchase (PCP)?
Watch Our Video What is Personal Contract Purchase (PCP)?

Personal Contract Purchase (PCP) is a popular option that allows you to buy a new or a used car with fixed monthly payments.

It is similar to a Hire Purchase agreement in that you will typically pay an initial deposit followed by monthly installments over a term of between 18 and 48 months.

What’s unique about PCP is that your payments cover the depreciation of the car over the term, rather than its entire value. At the end of your agreement, there is an optional final balloon payment that you can make if you want to keep the car. This is also referred to as the Guaranteed Minimum Future Value (GMFV).

How does PCP actually work?​

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When you have chosen your vehicle, you will agree your deposit amount, term length and annual mileage with a member of our team. We will then determine the vehicle’s Guaranteed Minimum Future Value (GMFV) at the end of the agreement and provide details of your monthly payments.

At the end of your agreement you will then have three options:

Return – Simply return the car with no further obligations
Retain – Keep the car by paying the optional final payment
Renew – Trade it in for another car

For a quotation, help, or advice contact us and ask to speak to one of our Business Managers.

What are the advantages of PCP?

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  • Your monthly payments are typically lower than if your car is financed by a Hire Purchase agreement.
  • You have the option of simply walking away with no further commitments once you have made all the payments.
  • Similar to PCH, you can upgrade your vehicle to a newer one every few years.
  • If your car is worth more than the Guaranteed Minimum Future Value, the equity can be used towards a deposit on a new car.

What should you consider when opting for PCP?

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  • In order to own the vehicle outright, you will need to pay the final balloon payment (the Guaranteed Minimum Future Value).
  • Your agreement is subject to a mileage allowance, agreed at the beginning of your contract, and excess mileage charges may apply.
  • You will need to settle any outstanding finance before selling the car.
  • You’ll need to keep the car properly insured, maintained and in your possession until the full value is paid off.

Can I settle my PCP agreement early?

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It’s often possible to settle your agreement early. Simply ask the finance company to provide a settlement figure. Please note that the finance company will require you to pay off the difference between what your car is worth and what you still owe; this could result in negative equity. On the other hand, if your car is worth more at the end of the term than its Guaranteed Minimum Future Value, you will have positive equity to contribute towards your next car.

Find and finance your next vehicle through PCP

What is Hire Purchase (HP)?
Watch Our Video What is Hire Purchase (HP)?

Hire Purchase (HP) is a way to purchase a new or used car affordably. Like PCP, it involves paying an initial deposit followed by monthly installments. However, with HP, you pay off the entire value of the vehicle, meaning you own it outright at the end of the agreement.

What are the advantages of HP?

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  • You will own the vehicle outright at the end of the agreement by paying for it in an affordable way.
  • Unlike a PCP or PCH contract, you won't need to estimate your mileage at the start of your agreement, so there will be no excess mileage charges to pay.
  • Once you’ve made your final monthly payment, including the option to purchase fee, you'll have full ownership of the car.

What should you consider when opting for HP?

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  • You will be paying off the full value of the car, so monthly payments will likely be higher than some other finance options, such as PCP.
  • You will need to settle any outstanding finance before selling the car.
  • You will only own the car once all your repayments have been made.
  • You’ll need to keep the car properly insured, maintained and in your possession until the full value is paid off.

Can I settle my HP agreement early?

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It’s usually possible to settle a Hire Purchase finance agreement early. If you have got through two-thirds of the agreement, the options to end it early open up.

You can pay off a Hire Purchase agreement with a settlement fee, which covers the cost of any remaining unpaid instalments and interest payments. Once this is paid, you take full ownership.

Find and finance your next vehicle through HP
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