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Car Finance

The term car finance covers several types of financial products you can take out when purchasing a car. Most deals require an initial deposit followed by set monthly payments.

By spreading the cost over time, it’s a great way to avoid paying for a car all in one go. Much like other types of loan, interest rates tend to apply, as well as extra fees.
Types of finance available
PERSONAL CONTRACT PURCHASE (PCP)
With PCP finance, you pay an initial deposit, followed by monthly instalments, but a large portion of the loan is deferred until the end of the agreement. You can pay that final sum to own the car, hand it back or start another agreement.
HIRE PURCHASE (HP)
With HP, you pay a deposit up front, and then pay off the rest of the balance – plus the interest – in equal monthly instalments. You’ll pay an ‘option to purchase’ fee, then the car is yours at the end of the agreement.
PERSONAL CONTRACT HIRE (PCH)
PCH is another way to finance a car. It’s technically a method of leasing a car rather than buying it. You pay a deposit and monthly instalments, which may be lower than some other finance agreements, but you never own the car.
PCONDITIONAL SALE (CS)
With CS, you can spread the cost of a vehicle over the course of one or several years and will have bought the vehicle by the end of the contract. There isn’t usually an ‘option to purchase’ fee, you’ll just automatically own the car once finance has been fully repaid.
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FINANCIAL DISCLOSURE
REO Car Sales is registered in England and Wales. REO Car Sales is authorised and regulated by the Financial Conduct Authority, under FCA number: 929694. We act as a credit broker not a lender. We work with several carefully selected credit providers who may be able to offer you finance for your purchase. (Written Quotation available upon request). Whichever lender we introduce you to, we will typically receive commission from them (either a fixed fee or a fixed percentage of the amount you borrow). The lenders we work with could pay commission at different rates. All finance is subject to status and income. Terms and conditions apply. Applicants must be 18 year or over. We are only able to offer finance products from these providers.

Why Finance Through A Dealership?

What is Hire Purchase?

What is Personal Contract Purchase?

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Representative Example [PCP]

An OTR Cash Price of £19,995.00 with a deposit of £0.00 leaving an amount of credit of £19,995.00. The agreement is resulting a Representative 12.9% APR and a total amount payable of £25,310.40. Payments are based on a duration of agreement of 41 months, with a first monthly payment of £ 519.01, regular monthly payment of £519.01 and a final monthly payment of £4,550.00.

Contact Details

Unit 6a
Cwmtillery Industrial Estate
Cwmtillery Abertillery Gwent
NP13 1LZ
South Wales
NP13 1LZ 01495848134 07939418193

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