Navigating the world of car finance doesn't have to be intimidating. Whether you're a first-time buyer or just looking for a refresh on car finance options, understanding what’s out there is crucial in making an informed decision.

In this short guide, we explain two popular finance options: Personal Contract Purchase (PCP) and Hire Purchase (HP). Plus, we’ll introduce you to our unique offers here at Eden Motor Group, contact our team for more information!

What is Car Finance?

Car finance refers to the various methods available to fund the purchase of a new or used vehicle when outright purchase isn’t an option or preferred choice. These methods typically include loans and leasing options, which allow you to spread the cost of the vehicle over a set period.

Personal Contract Purchase (PCP)

PCP is a flexible and popular method of vehicle financing. It involves three main stages:

  1. Deposit: Initially, you pay a deposit which is between 10% and 30% of the car's value. (Doesn’t need to be 10%, we often do deposits ranging from as little as £199)
  2. Monthly Payments: You pay lower monthly payments for a fixed term, usually between 18 and 48 months. These payments cover the depreciation of the car, rather than its entire value, making them typically lower than other finance types.
  3. Balloon Payment (GFV): At the end of the agreement, you can choose to pay a final balloon payment (also known as the Guaranteed Future Value or GFV) to own the car outright, return the car, or trade it in against a new vehicle on a new PCP contract.

Benefits of PCP:

  • Lower monthly payments.
  • Flexibility at the end of the term.
  • Options to buy, return, or exchange your vehicle.

Hire Purchase (HP)

Hire Purchase is a straightforward finance plan to eventually own the car:

  1. Deposit: You start with a deposit, typically 10% of the car’s price.
  2. Monthly Payments: You then pay off the value of the car in monthly instalments, plus interest, over an agreed period (usually 12-60 months).
  3. Ownership: After the final payment, the car is yours without any balloon payment.

Benefits of HP:

  • Simple to understand and manage.
  • No balloon payment at the end.
  • You own the car outright after the final instalment.

Why Choose Eden Motor Group for Car Finance?

At Eden Motor Group, we understand that choosing the right finance option can be as crucial as selecting the right car. Here’s why you should consider us for your car finance needs:

  • Personalised Finance Options: We offer both PCP and HP among other financing options, tailored to suit your budget and lifestyle.
  • Expert Advice: Our team of finance experts is always on hand to guide you through the process, ensuring you understand all your options and find the best solution.
  • Competitive Rates: We negotiate the best possible rates with our financial partners, aiming to give you the most cost-effective solution.
  • Wide Range of Cars: With a diverse selection of models from leading manufacturers, you’re sure to find the perfect car to match your financing choice.
  • Discount Options: We are proud to offer a range of discounts including NHS, Military Discount, Armed Forces Discount and more, speak to our professionals to see if you qualify!

Eden Motor Group - Our Finance Options

Ready to take the next step in your car buying journey? Visit Eden Motor Group today to explore our wide variety of vehicles and finance options. Whether you're leaning towards PCP for its flexibility or HP for its straightforward path to ownership, we have the right plan for you. Don't wait—your perfect car awaits you at Eden Motor Group, where our team is ready to help you drive away with confidence and satisfaction.

Remember, buying a car is an important decision, and being well-informed is your best tool in navigating car finance. Choose wisely, drive safely, and enjoy the journey in your new vehicle! Contact our team at Eden Motor Group to learn more about what we can offer you.