Dick Lovett offers the perfect combination of quality and value with a wide range of car finance deals and special offers to make buying your next new or approved used car as easy as possible.
There are also car finance deals for personal and business vehicle leasing, with payment plans to spread the repayments and further savings available on our special aftersales, servicing and parts offers. All of our current car finance deals and offers can be explored online today and further details are available by contacting your nearest dealership.
We also offer fixed payments and representative APR on various makes and models to help with budgeting for servicing costs including 0% APR Finance for BMW and MINI when you spend over £250 on Servicing, repair, bodyshop work and parts & accessories*.
If you’ve found the next car you want to buy, but aren’t sure on how to pay for it, you might need some help with the various car finance options available. Whether this is your first time buying a vehicle on car finance, or you’ve financed a car before but could benefit from a refresher on the latest types of car finance deals available, we’ve compiled a summary of the most popular options here.
The jargon and acronyms surrounding car finance payments and plans might be confusing. What’s the difference between PCP, HP and PCH, for example? What’s the best way to finance a car if you want to pay lower amounts every month? What car finance deals mean you own the vehicle at the end of the agreement?
When buying a car on finance, you typically have three main options: PCP, HP and PCH. To help you decide which option is right for you, we’ve summarised the key points below of each finance type. We’ve also explained three other types of car finance agreements that are often available: 0% Car Finance, Business Contract Hire and Lease Purchase.
Finance options explained
Personal Contract Purchase (PCP)
With a Personal Contract Purchase, you can swap your car at intervals between 24 and 48 months.
This method of car finance is perfect if you are looking to have a new car every few years and don’t want to worry about your car depreciating in value. The Guaranteed Minimum Future Value ensures that the price you agree at the start of your PCP deal will be the minimum price given when you hand your car back at the end of the agreement.
What happens at the end of the PCP?
When you reach the end of your Personal Contract Purchase agreement, you have three choices; part exchange your vehicle for another car, keep the car and pay the final payment, or hand it back to the finance company with nothing further to pay (subject to the mileage being within the agreed limit and the car being in good condition). If you prefer to keep the car, you may be able to discuss refinancing the optional final payment.
Steps to take out a PCP agreement
Pick out your favourite vehicle from our stock of new cars, or used cars
Contact our finance specialists at Dick Lovett to discuss details of our PCP agreements, including size of deposit, monthly repayment schedule and end-of-term balloon payment
Contact our dealerships by email, telephone or in person to collect your new car and drive away happy
If you are looking for a straightforward way to own a new car, Hire Purchase is the best option for you.
With this car finance method you’ll pay off the entire value of the car, rather than just a percentage of it as you would with a PCP. The monthly payments will be higher than a PCP finance deal, but you will own the car at the end of the agreement. There are no mileage limits.
What happens at the end of the HP?
At the end of the Hire Purchase agreement, you will own the car, provided that you have kept up with the payments.
When you take out a Personal Contract Hire agreement, you do not own the car, so don’t need to worry about depreciation of the vehicle or selling it at the end of the contract.
With this type of car finance, you have fixed monthly payments which can also include servicing and maintenance for the period you will be hiring the car.
What happens at the end of the PCH?
You simply give your car back with nothing more to pay (subject to the mileage being within the agreed limit and the car being in good condition).
Steps to take out a PCH agreement
Choose the new car you want to take out on a Personal Contract Hire deal
Set your monthly repayment schedule and agree on the length of the PCH plan
Business Contract Hire – or BCH – is a car finance option for businesses and companies who want to lease cars for employees. It’s not available to individuals on a personal basis, but works in the same way that Personal Contract Hire does. If you have a company car allowance, you might consider business contract hire.
Business car contract hire deals, also known as business leasing, run on a fixed term – typically between 12 and 48 months long – and fixed mileage limits. The benefit for businesses is that VAT on the car can be claimed back by the company leasing the vehicle. This is 50% charged on the monthly payment from the lease company, but the business leasing the car can also claim 100% of the VAT on the part of the payment that covers service and repair.
This typically means lower rental costs for the business leasing the car.
What happens at the end of the BCH?
Just like PCH, there isn’t an option to buy the car at the end of the agreement. The car is returned, and the business can look for a new car finance deal. Subject to the mileage being within the agreed limit and the car being in good condition there is nothing more to pay.
Lease Purchase or Conditional Sale are car finance deals that are suitable if you definitely want to own the vehicle at the end of the agreement.
It’s similar to car finance on Hire Purchase. With a Lease Purchase, you pay a deposit – you can pay more if you choose to, which can potentially reduce the size of the monthly payments – followed by monthly payments. There aren’t any mileage limits.
What happens at the end of the Lease Purchase?
At the end of the agreed term, a final payment is required to buy the car outright. This isn’t optional; the final payment, which is also known as a balloon payment, has to be settled at the end of the agreement.
Steps to take out a Lease Purchase agreement
Select your perfect car from our range of new models. Lease Purchase may be available on selected used brands too – including Aston Martin
Provide a deposit and agree on monthly repayments and the length of the agreement
Car finance deals that offer 0% APR finance allow you to spread the total cost of buying a car over a few years without paying anything extra. There’s no interest added to the loan, so you’re just paying off the value of the car – which can save customers money across the length of the agreement.
Check the details of 0% car finance to make sure the 0% APR applies for the whole of the agreement and not part of it. With this type of car finance you might be required to pay a larger deposit.
Steps to take out a 0% Car Finance agreement
Choose a new car
Agree on a deposit and the length of the repayment schedule, including term and monthly amount
Find your nearest Dick Lovett dealership. We have over 20 brand locations, including BMW, BMW Motorrad, MINI, Land Rover, Jaguar, Aston Martin, Porsche and Ferrari, across the South West of England and Wales.
*All loans are subject to status and affordability checks including use of credit reference agency data. You must be 18 or over to apply. Finance agreement and full terms and conditions are available on application. Finance provided by Payment Assist Ltd. Payment Assist Ltd is authorised and regulated by the Financial Conduct Authority and entered on the Financial Services Register under firm registration number 622544. You must have a valid UK based debit card to be accepted by Payment Assist for finance. Credit cards and certain debit cards are not allowed, these include prepaid debit cards and cards that do not allow continuous payments to be set up. 1 to 6 month interest free credit options available on purchases over £250.
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