Ways to Buy
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Choosing the right way to buy – How can I finance my car?

There are many options and ways to buy your next vehicle from Fordthorne, subject to your own financial status and personal requirements. We recommend you talk these options through with one of our expert Sales Executives at our Cardiff FordStore who are fully experienced to assist you in this decision, however we have outlined some of the ways to buy below including some pros and cons of each to give you a brief overview of the options available.

What is Hire Purchase?

Using a HP finance product, the loan is secured against the car. Fixed monthly payments will then be arranged so you can budget accordingly and you will see how much the car will cost you in total over the period. As with any finance agreement, you won’t own the car until the last payment has been made.

We have access to excellent rates and deals and will take care of all of the administration for you, giving you a clear and hassle free experience.

Pros

  • Quick and easy to arrange
  • Flexible repayment terms (from 12 to 60 months)
  • Competitive fixed interest rates

Cons

  • You don’t own the car until the final payment

What is Personal Contract Purchase (PCP)?

PCP is similar to a hire purchase agreement but will often mean lower monthly payments. Instead of getting a loan for the full value of the car, you get a loan for the difference between its price brand new and the predicted value of the car at the end of the hire agreement. This is based on a forecast of annual mileage over the term of the agreement. It’s important to note that the car must be serviced and maintained by a Volvo dealer, and PCP is not advisable to high mileage users due to restrictions, charges and limits.

At the end of the agreement term you have 3 options:

  • Part exchange the car and use any equity towards your deposit for your new car
  • Hand back the vehicle with nothing left to pay – Subject to Terms and Conditions
  • Pay off the Guaranteed Future Value (GFV) and own the vehicle

Pros

  • Lower monthly payments
  • Low deposit (usually 10%)
  • Flexible repayment terms (from 12 to 48 months)
  • A choice of what to do at the end of the repayment term

Cons

  • Exceeding the mileage will result in charges outlined in the agreement
  • You will incur charges if the vehicle is handed back and the it does not meet the fair wear and tear guidelines outlined in the Terms and Conditions

What is Personal Contract Hire (PCH)?

Using a HP finance product, the loan is secured against the car. Fixed monthly payments will then be arranged so you can budget accordingly and you will see how much the car will cost you in total over the period. As with any finance agreement, you won’t own the car until the last payment has been made.

PCH differs from Hire Purchase and Personal Contract Purchase as you are leasing the vehicle instead of purchasing it with finance. You’ll pay a monthly amount for the use of a car, which can include servicing and maintenance, providing the mileage doesn’t exceed a specified limit.

Pros

  • Motoring at a fixed monthly cost
  • Can include servicing and maintenance costs
  • No worries about the car depreciating in value
  • Flexible payment terms (from 12 to 36 months)

Cons

  • Monthly costs are higher because servicing and maintenance are included
  • Deposit is usually three months’ rental
  • Possible extra costs if you exceed the mileage limit or want to end the agreement early
  • The car is never yours
Contact us to find out more