Help & Advice

PCP or HP?

Hi. I have no adverse credit on my file. Currently renting a private house and just been added to electoral roll.

I pay my bills every month on time. I use my overdraft and have a credit card and mobile contract. I have a personal loan and car hp which I've had for three years and never missed a payment. I would be trading my car in and have a £100 deposit.

I'm looking to borrow about 10 k or have a new car on a PCP. I am in full time employment earn £23k and been with my employer and bank for 10 plus yrs. I was recently turned down for a credit card and loan. My ex partner has bad credit. Could you help?

Richard


Answer

Hi Richard, thank you for your question.

The fact that your partner has bad credit wouldn't effect your chances of getting a PCP or HP agreement as long as you apply on your own. The fact you were declined for a card and loan recently may well be down to your electoral roll history. Are you now on the register? If so, great! If not we can still help but all your current credit would need to be in your current address. You'd also need a proof of address, payslips and a copy of your licence.

What is your preference a PCP or £10k hire purchase agreement? With a PCP you rent the car for a period and either hand the car back at the end of the agreement of purchase the vehicle for a GFV (guaranteed future value). The lenders that offer PCPs do require customers to have good credit.

With a HP (Hire Purchase) agreement, you make monthly repayments for a set period time. At the end of this period of time, you will have made all repayments and will have cleared the finance - leaving you as the owner of the car.
Please make an application and once approved you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Rachel

Answer correct as of September 2016

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Best available rate
Total repayment
Total cost of credit

Best available rate

Total repayment

Total cost of credit

We compare products from 18 of the UK's top lenders to get you the best deal.

Representative example. Excellent Credit

Borrowing £7,500 over 48 months with a representative APR of 16.8%, an annual interest rate of 16.8% and a deposit of £0.00, the amount payable would be: £211.25 a month, with a total cost of credit of £2,640 and a total amount payable of £10,140.

CarFinance 247 is a broker and not a lender