Support at Birchwood

Buy your next car or van with Birchwood in four easy steps:

  1. Identify your ideal new or used vehicle
  2. Use our finance calculator (included with our new car offers and each of our used cars) to find a deal that’s right for you – and apply for finance online
  3. We’ll soon be in touch to confirm your next steps
What is Personal Contract Purchase (PCP)?
A Personal Contract Purchase is usually broken up into 3 sections. The first is a deposit. This is then followed by a series of fixed monthly instalments before you have the option to make a final payment (sometimes called a balloon payment) at the end in order to keep the vehicle. Consumers have the choice of returning the car, paying the final payment (which is dependent on resale value) or putting that resale value towards a new vehicle.

Will I be approved for Finance?

Provided your credit score is good, you should have no issues.

Can I get car finance even if I have bad credit?

Usually, yes. However, people with low credit scores are typically considered higher risk borrowers; this can mean stricter eligibility criteria, including higher interest rates.

What is APR?

Annual Percentage Rate (APR) represents the cost of borrowing, including admin fees and interest.

What is the difference between a soft credit search and a hard credit search?

What is Hire Purchase (HP)?
Hire Purchase is a plan where you usually pay a deposit, and then pay off the total vehicle value in monthly instalments. Once you have made your last payment, the vehicle is yours.

Will I be approved for Finance?

If you have a good credit score, there’s no reason why not.

Can I get car finance even if I have bad credit?

There’s a good chance you will but you may not be eligible for the best deals.

What is APR?

APR stands for Annual Percentage Rate and it represents the annual cost of borrowing, including fees and interest.

What is the difference between a soft credit search and a hard credit search?


Benefits of HP​Benefits of PCP
​▪          You have access to a vehicle that you might not be able to purchase outright

▪          There are no mileage considerations, which means potential excess mileage charges

▪          There’s no larger, balloon payment – you pay equal monthly instalments

▪          The car is yours once you’ve paid the final instalment

​▪          Provides access to vehicles that you might not be able to afford to buy outright

▪          Monthly payments tend to be lower than with Hire Purchase

▪          Flexibility – decide whether to buy or return the vehicle – or start a new PCP deal (and choose a brand-new car or van)


Things to consider (HP)Things to consider (PCP)
▪ Monthly payments tend to be higher compared to PCP (this is because you’re paying off the full value of the car)

▪ Until the final instalment is paid, you don’t own the car

▪ You’ll need to keep the vehicle suitably insured and maintained until the full value is paid off

▪ To own the vehicle, you’ll need to pay the final balloon payment (which is larger than preceding instalments) – this is the vehicle’s guaranteed future value (GMFV)

▪ You’ll need to agree on a mileage allowance which, if exceeded, may result in excess mileage charges

▪ You’re responsible for insuring and maintaining the vehicle until the final instalment is paid

▪ Until all payments are made, the vehicle belongs to the financer