Looking for a financing solution that suits your vehicle purchasing needs in Dorset? At Ferndown Commercials, whether you’re looking for flexibility or straightforward ownership, our Personal Contract Purchase and Hire Purchase plans make financing simple and manageable.
FUNDING SOLUTIONS EXPLAINED
What is Personal Contract Purchase (PCP)?
PCP is a flexible financing option that allows you to drive a vehicle for a set period, with the option to keep it, exchange it or return it at the end of the agreement.
With PCP, you make a deposit followed by monthly payments, based on the car’s expected depreciation. At the end of the term, you can make a final balloon payment to keep the vehicle – or, you can exchange it for another vehicle, or return it, with nothing more to pay.
PCP offers lower monthly payments than other finance options, providing flexibility and the chance to upgrade vehicles regularly.
Consider mileage limits and potential excess mileage fees – and the final payment if you decide to keep the vehicle.
Yes, most PCP agreements allow early settlement. Contact our team to understand the specific terms.
Exceeding your mileage limit on a PCP agreement usually results in an additional charge per mile, as specified in your contract. It’s a good idea to estimate your annual mileage beforehand to avoid unexpected fees at the end of your term.
If you’re in a PCP agreement, you may be able to end your contract early or part-exchange your vehicle. For HP, you can discuss early settlement terms to clear your balance and transition to a new vehicle. Contact us for more details on switching options.
What is Hire Purchase (HP)?
HP is a financing option where you pay off the full value of the vehicle with fixed monthly payments. Ownership transfers to you once the instalment is paid.
After an initial deposit, you make monthly payments toward the full cost of the vehicle. Once all payments are complete, you own the vehicle outright.
HP offers straightforward ownership with predictable payments and no mileage restrictions; it’s ideal for those who are looking for long-term ownership from the get-go.
Consider that monthly payments are typically higher with HP, as you’re paying for the entire value of the vehicle.
Yes, most HP agreements can be settled early. Contact us for information on early repayment terms.
Yes, most HP agreements allow you to make extra payments to reduce your balance. This can shorten your payment term or reduce the overall interest cost. Check with us for details on how additional payments may affect your agreement.
In certain instances, yes. Basically, your credit score impacts the interest rate and terms of your financing:
- A higher credit score typically means better terms
- A lower score may mean higher rates
We’re happy to discuss options based on your unique situation.
Get in touch
At Ferndown Commercials, we’re committed to helping you find the best financing solution for your needs. Our team provides expert advice and transparent options tailored to your budget and goals.
Got a question or need help?
Ready to explore your options? Contact Ferndown Commercials in Wimborne today to discuss your funding options, book an appointment or get personalised guidance on vehicle financing.