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Buy your next car or van with Birchwood in four easy steps:
Provided your credit score is good, you should have no issues.
Usually, yes. However, people with low credit scores are typically considered higher risk borrowers; this can mean stricter eligibility criteria, including higher interest rates.
Annual Percentage Rate (APR) represents the cost of borrowing, including admin fees and interest.
If you have a good credit score, there’s no reason why not.
There’s a good chance you will but you may not be eligible for the best deals.
APR stands for Annual Percentage Rate and it represents the annual cost of borrowing, including fees and interest.
A hard credit check may negatively affect your credit score if you already have a bad credit rating; a soft credit check won’t impact your credit rating.
| 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
|
