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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 choose your vehicle, we will explain the deposit, agreement term, annual mileage, monthly payments and optional final payment. Your finance provider sets out the terms in your agreement.

At the end of a PCP agreement, you normally have three options:

  • Return: hand the car back, subject to the agreed mileage, condition and other contract requirements. Charges may apply.
  • Retain: keep the car by paying the optional final payment and any applicable purchase fee.
  • Renew: part-exchange the car, settling the outstanding finance. Any surplus may contribute towards another car; equity is not guaranteed and any shortfall must be covered.

Contact CUPRA Stirling for a personalised quotation and an explanation of the available options.

What are the advantages of PCP?

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  • Monthly payments may be lower than a comparable Hire Purchase agreement because an optional final payment is deferred. Compare the deposit, term, APR and total amount payable.
  • You can choose whether to return, retain or part-exchange the car at the end, subject to your agreement.
  • Returning the car is subject to mileage, condition and other contract requirements; additional charges may apply.
  • If the agreed part-exchange value exceeds the finance settlement, the surplus may help fund your next car. Equity is not guaranteed.

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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You can ask your finance provider for an early settlement quotation before the end of a regulated PCP agreement. The provider will explain the amount payable, any applicable charges or reduction in future interest, and the quotation expiry date.

The settlement figure is separate from your car’s market value. If you part-exchange the car, any shortfall between its agreed value and the finance settlement must be covered. Any surplus may be available towards your next vehicle. Equity is not guaranteed.

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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You can request an early settlement figure from your finance provider before the end of a regulated Hire Purchase agreement. You do not need to wait until a fixed proportion of the term has passed.

Your provider will confirm the amount payable, including any applicable charges and reduction in future interest, and how long the quotation is valid. Ownership transfers once the required settlement and any applicable option-to-purchase fee have been paid.

Find and finance your next vehicle through HP
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