HP, PCP, PCH - our jargon busting car finance guide

By Pye Motors

Whether you’ve chosen a new 70 plate, an upgrade to your current model or you need a second car for the family, your next decision is how you’re going to pay for your new vehicle.

Car finance is the preferred choice for many of our customers but with a number of different options it’s sometimes difficult to determine what they all mean and which one is best for you. We’ve put together an easy guide to bust some of that jargon.

Hire Purchase (Ford Acquire)
The simplest type of car loan. You usually pay a deposit which is deducted from the overall cost and then monthly repayments over an agreed period of time to include the interest on the loan and the full value of the vehicle.

Perfect for . .
Those who want an easy and straightforward finance deal.

Things to think about . .
Unlike a personal loan you don’t own the car until the final payment is made.

PCP or Personal Contract Purchase (Ford Options)
Similar to hire purchase but rather than financing the car until it’s paid off in full you enter into a contract for an agreed length of time. At the end of this contract you can decide whether to hand the car back, pay the resale value and keep it, or use what the car is worth to purchase another vehicle and start the process again.

Perfect for . . .
Those who are addicted to the new car smell and love having the latest model on the driveway.

Things to think about . .
Your credit rating will be checked each time, so ensure it’s good before you start.
There will be some terms and conditions such as mileage limits or extra charges for wear and tear when you return the car so make sure you read the small print.
Some insurance companies may limit your days out of the country if you plan to use your vehicle abroad.

PCH or Personal Contract Hire (Ford Personal Contract Hire)
More commonly known as leasing a car, where you never actually own the vehicle.

Perfect for . . .
Those who are not planning to own the vehicle at the end of the agreement and those that are worried about ongoing service costs as these (as well as car tax) are generally included.

Things to think about . . .
You may need to pay a few months leasing in advance and again there may be terms and conditions to cover annual mileage, wear and tear. All vehicle servicing and car tax are generally included so you only need to pay for fuel.

Ready to buy your new car?
At Pye Motors we have access to a range of products through Ford Credit vehicle finance.
Throughout our website, particularly on our used cars, you will have access to our finance calculator which enables you to gain a bespoke quote based on your preferred deposit, annual mileage and contract term with hire purchase and personal contract finance (PCP) options.

So now you’ve covered the finance you can get to the fun bit of choosing your new car!
View our hot deals on our website https://www.pyemotors.co.uk/new-cars/new-cars.aspx or pop into our showrooms at Kendal, Morecambe & Barrow.

Want to talk?

  • Pye Motors Morecambe 01524 598598
  • Pye Motors Kendal 01539 816800
  • Pye Motors Barrow 01229 842323
  • Pye Hire 01524 598641
  • Accident? Repair Centre 01524 847962

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© Pye Motors 2015 - 2022. All rights reserved.
Pye Motors work with a number of carefully selected credit providers who may be able to offer you finance for your purchase. We are only able to offer finance products from these providers: Ford Credit PLC, Black Horse Ltd, Ford Lease, Barclays Partner Finance, Close Motors Finance, Evolution Funding Ltd and Mann Island Finance.
Pye Motors is a limited company registered in England. Registered office: Ovangle Road, Morecambe LA3 3PF. Registered number: 204727. VAT number: 153686543
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