What does 0 PCP mean?

What does 0 PCP mean?

First off, the zero per cent finance deals on offer will usually be based on a PCP (Personal Contract Purchase) finance package or a more traditional HP (Hire Purchase) deal. With HP, of course, the benefit is that at the end of the payment period, you own the car outright.

Are PCP deals a good idea?

No. If you’ve found a car that’s a couple of years old you can usually finance it with PCP. However, interest rates tend to be less competitive. This is because cars have largely lost a large chunk of their value, meaning there’s little chance of the dealer getting much back on the car.

What is HP and PCP in car finance?

Hire Purchase (HP) and Personal Contract Payment (PCP) are the most popular types of car finance agreement, and we offer both at Carbase. In most cases, both HP and PCP include an initial deposit payment, followed by a loan against either all or part of the remaining value of the car.

What does HP stand for in car finance?

Car hire purchase
Car hire purchase (HP) is a car finance plan. After paying a relatively low deposit, you hire your car with the option to buy it by the end of the contract.

What credit score do you need to buy a car UK?

You have better chances of getting car finance with a good credit score which can range between 881-960 for Experian, 420-465 for Equifax and 604-627 for TransUnion. This is not definitive though, because you can get car finance with fair, poor and even bad credit depending where you apply.

How does HP car finance work?

Hire purchase is a way to finance buying a new or used car. You (usually) pay a deposit and pay off the value of the car in monthly instalments, with the loan secured against the car. This means you don’t own the vehicle until the last payment is made.

What is CS in car finance?

Conditional Sale (CS) With CS, the customer is usually required to pay a deposit of around 10%, then the remaining cost of the vehicle, plus interest, is repaid in equal monthly instalments across the term of the agreement which can between one – five years (12 – 60 months). The finance is secured against the vehicle.

What checks are done for car finance?

The most common checks for car finance include a credit check and a financial assessment. You’ll also need to supply proof of identity and various other pieces of documentation. Read on to find out what checks are done for car finance and what documents you will need when you apply.