We’re aware that financing can be difficult to fully understand – but no need to worry, we’ll explain the relative merits of our packages: Hire Purchase, Personal Contract Purchase and Personal Contract Hire.
Please be assured, we’re able to tailor your financing choice according to your needs and budget – but before you decide which is best, allow us to break each option down.
If you require outright ownership of your chosen MG, HP is the best form of financing – and the quickest. Not only is flexible, allowing you to choose your ideal deposit amount and fixed monthly repayments, it also tends to offer lower interest rates than Personal Contract Purchase (PCP).
Do bear in mind, however, that the monthly repayments are usually higher than those available with PCP, and there is no opportunity to part-exchange the vehicle for an upgrade at the end of the contract.
PCP is a highly flexible option that enables you to drive your next MG without owning it outright. Instead of paying for the entire value of the vehicle, you agree a Guaranteed Future Value (GFV) with us, and pay only for the depreciation. As such, the monthly repayments tend to be lower than with HP. At the end of the agreement, you can either upgrade to a newer model or make a balloon payment to own the MG outright.
It’s worth noting that with PCP, you do not own the vehicle, and will be liable for any damage or excess mileage charges incurred during the contract. It’s also a more costly option if you eventually decide to buy the car outright.
If you require the benefits of driving an MG without committing to outright ownership, PCH is the best and most cost-effective option, especially as maintenance is typically included as well. PCH allows you to determine the deposit amount, the length of the agreement and your mileage allowance, then pay fixed monthly rentals for the duration of the contract. At the end of the term, you simply hand your keys back with no further commitments.
PCH isn’t as flexible as PCP, since it doesn’t allow you to upgrade your vehicle at the end of the contract, or end your agreement early. It’s also worth noting that if you exceed the pre-agreed mileage limit, you’ll be liable for extra charges. There’s no option to buy.
If you have any questions about car financing or if you with to register your interest, please get in touch with the Croxdale MG team today.