Fiat finance PCP, PCH & HP at Eden

We’re passionate about every one of Fiat’s cars and we make it our mission to provide as many motorists in Basingstoke with the opportunity to enjoy ownership of their ideal model. To that end, we present a variety of flexible finance options.

Choose between Personal Contract Purchase, Personal Contract Hire and Hire Purchase, each of which has something unique to offer. Each scheme enables you to pay an initial deposit followed by fixed monthly repayments over an agreed period of time. As such, you can look forward to manageable and affordable motoring and the highest quality of vehicles around.

Our sales advisors are always available to discuss the purchasing options that are available, providing you with all the necessary information and providing a number of quotations from which to choose. If you’d wish for them to arrange for a finance quote on any of the new or used Fiat cars we have in stock, get in touch today.

PERSONAL CONTRACT PURCHASE

There are similarities between a Personal Contract Purchase and a Hire Purchase contract. At Eden Fiat, we are happy to explain the benefits of a Personal Contract Purchase to you, and find the right finance package for you and your motoring desires.

At the start of the Personal Contract Purchase process, you will pay a deposit on the car you have chosen; this can be up to 30 percent of the car price total. This can be paid in a monetary amount, through part exchanging your current vehicle, or through a combination of the two. Following this, you will make monthly payments for an agreed-upon period of between 18 and 48 months.

The unique element of the Personal Contract Purchase is the Guaranteed Minimum Future Value (GMFV). At the beginning of your contract agreement, the predicted minimum value of your car once the contract ends is calculated. The price that you pay monthly is the difference between the initial purchase price and this predicted future value; at the end, you will make a balloon payment in order to settle the amount and bring the agreement to a close.

At the end of the Personal Contract Purchase, you have several options. The car can be returned to Eden Fiat, with no further commitment. You can transfer your Personal Contract Purchase into a Hire Purchase agreement to own the car outright, or you can part exchange the vehicle on another car from Eden Motor Group.

If you have any questions or concerns regarding Personal Contract Purchase with Eden Fiat, feel free to contact us today. Visit us in person to speak to our experienced members of staff, or use our telephone number to make an appointment at a time to suit you. Alternatively, leave your details with us through our online enquiry form, and we will get back to you as quickly as we can.

How does PCP actually work?​

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When you have chosen your vehicle, you will then agree your annual mileage and decide on the agreement term with one of our Business Managers.

We will then determine the Guaranteed Minimum Future Value (GMFV) of the vehicle at the end of the agreement and work out a deposit and monthly amount that works for you.

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

Return – Simply return the car the back to us 
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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  • Monthly payments on a car financed by PCP are usually lower than if your car is financed by a Hire Purchase agreement.
  • If you decide not to buy the car, you can simply walk away when you've made all the payments.
  • Similar to PCH, you can drive away a new or used car every few years (dependent on the chosen term) without worrying about selling it on.
  • If your car is worth more than the Guaranteed Future Value then you can use that equity towards a deposit on a new car.

What should you consider when option for a PCP?

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  • If you want to buy the car you will need to pay your final balloon payment (the Guaranteed Future Value).
  • Similar to PCH, you will need to agree on a mileage allowance at the beginning of your contract and there may be excess mileage charges if you exceed this.
  • You won’t be able to sell the car without settling the finance.
  • You won’t own the car until you have made all of your repayments.
  • 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 normally settle your agreement early by asking the finance company to provide you with a settlement figure. However, the finance company will require you to pay off the difference between what your car is worth, and what you still owe and there may be a difference which is known as negative equity. On the other hand, you may find that at the end of your term your car is worth more than the Guaranteed Future Value, which means you will have some positive equity to contribute towards your next car.

What is Hire Purchase (HP)?

​Hire Purchase is a way to finance buying a new or used car. You will normally pay an initial deposit and will pay off the entire value of the car in monthly instalments. When all the payments are made, the Hire Purchase agreement ends, and you own the car outright. 

What are the advantages of HP?

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  • You’ll be able to drive away a car that you may not have managed to buy outright.
  • Unlike a PCP or PCH contract, you won't need to estimate your mileage at the start of your Hire Purchase agreement, so you'll avoid excess mileage charges.
  • 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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  • Monthly payments may be higher than some other finance options, such as PCP, as you're paying off the full value of the car.
  • You won’t be able to sell the car without settling the finance.
  • You won’t own the car until you have made all of your repayments.
  • 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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The short answer is yes, you can end your finance early. There are different provisions within each finance agreement that allows you to do just that. If you have got through two-thirds of the way through your finance agreement, the options to end the finance agreement early open up.

For a Hire Purchase agreement, there is an option of paying it off early through a settlement fee. A settlement fee covers the cost of any remaining unpaid instalments and interest payments remaining on the agreement. Once the settlement fee is paid, you take full ownership of the car early.

Under a Personal Contract Purchase agreement, you can also pay a settlement fee for bringing the agreement to an end early. After that, you can choose to hand the car back or you have a second option. Through a PCP agreement, you can take full ownership of the car by paying off the remaining Guaranteed Minimum Future Value also known as a balloon payment.