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Which Car Finance is Best for Me?

Investing in a secondhand car is a big decision and most buyers choose to spread the cost over a fixed period. Arranging car finance through A1 Carriages is straightforward and means you'll be able to secure an affordable deal that's tailored to your personal circumstances.

We work alongside carefully selected credit providers in order to offer our customers a hassle-free service. You can speak to a member of the A1 Carriages team to find out more, or use our handy guide below to unravel the jargon and work out which type of finance deal represents the best fit for your needs.

Hire Purchase

A Hire Purchase agreement, also known as HP, is one of the most popular options when it comes to financing used cars. There'll usually be a deposit to pay, which will depend on the price of the vehicle, followed by fixed monthly payments. Typically, HP agreements last for between one and five years, and because you're guaranteed a fixed rate of interest and fixed monthly repayments, it's easy to budget ahead. Once you've made the final payment, the car is yours.

HP finance allows you to drive away in a car that you might not be able to buy outright. However, you'll need to settle any outstanding finance before selling the vehicle.

Personal Contract Purchase (PCP)

If you enjoy the flexibility of being able to change your car every few years, a Personal Contract Purchase (PCP) agreement might be the best option. You'll be asked for an initial deposit, followed by a series of fixed monthly payments. These monthly instalments are based on an estimate of how much the car will be worth at the end of the agreement, rather than its total value, as is the case with Hire Purchase deals. As a result, you'll be paying less each month than you would with a HP contract.

A major benefit of PCP finance is that at end of the agreement you'll have a number of options. If you're happy to carry on driving the car, you can make a final payment and buy it outright. Alternatively, if you're ready for a change, you can choose to part-exchange for another vehicle. Finally, you'll have the option to hand it back to the finance company and walk away, just as long as the vehicle is in an acceptable condition and you haven't exceeded the mileage allowance agreed at the start of the contract.

Like to find out more? You can discuss the full range of car finance options available with a member of the A1 Carriages team by calling us on either 01322 555 885 (for vehicles priced under £4,500) or 01322 281 525 (for all vehicles over £4,500). Alternatively, come and see us on Crayford Road in Dartford for a chat.