What is Personal Contract Purchase?
When buying new or Approved Used cars from Hendy MG, our customers are given a number of flexible finance options to choose from. An effective method of payment is the Personal Contract Purchase.
This is similar to a Hire Purchase agreement - which is also available from Hendy MG - but allows for a smaller monthly payment for easy budgeting. This is because Personal Contract Purchase payments are related to the depreciation value of the vehicle, rather than the full value of the car.
At the end of the Personal Contract Purchase the motorist has three options: return the car to the finance company, pay the outstanding balance on the value of the car, or upgrade/renew the vehicle using its part exchange value.
Personal Contract Purchase is a simple and effective way to purchase a new car on a regular basis in an affordable manner. It is also possible for the Personal Contract Purchase agreement to be settled early if desired.
The duration of a Personal Contract Purchase agreement is between 18 and 48 months; although 36 months is the favourite choice.
What is Hire Purchase?
As part of our comprehensive and flexible finance packages at Hendy Group, we offer Hire Purchase facilities for all of our new MG vehicles.
The primary benefit of Hire Purchase is that the payments made towards your vehicle are broken down into convenient monthly instalments, allowing you to budget in a more effective manner. Fixed interest rates are applied to the monthly payments, so you never have to deal with any unexpected costs. We will work out a contract with you at the beginning of the process, and the financial costs will remain the same for the duration of the agreement, following an agreed-upon initial deposit.
We also give you flexibility on the duration of the Hire Purchase contract - usually between one and five years. After you have made your final payment with us, the car is yours to own.
Hendy Group are a credit broker not a lender. We can introduce you to lenders and their products which may have different interest rates and charges. We are not an independent financial advisor and you are not obliged to take our advice. We do not charge you a fee for our services. We typically receive commission from the lender (either a fixed fee or a percentage of the amount you borrow) but this does not affect the amount you pay. Authorised and regulated by the Financial Conduct Authority. Reference Number 311625.