Finance
At EMG Motor Group, we understand that the purchase of your next vehicle is an important investment; it’s exciting, but it’s also a big commitment. It’s why our team are on hand to assist you in making it as affordable as possible, and with a range of finance packages available, it’s possible to spread the cost of your next new or used vehicle in a way that fits your finances.
How does car finance work?
Paying for a car outright means handing over a pretty large lump sum in one go; car finance allows you to borrow the amount from a lender, and repay it monthly over a set period of time. Usually, you’ll pay a deposit, and have the repayments set at a rate that you can comfortably afford. Arranging car finance when you purchase the vehicle removes the hassle and inconvenience of setting up your own private loan.
Which type of car finance should I choose?
There are two main types of car finance, and the one you go for will depend on your individual circumstances, as well as your approach to owning a vehicle. The two main types of vehicle finance are:
PCP (Personal Contract Purchase)
With cheaper monthly payments, PCP is a popular choice for those looking to buy a newer vehicle with a bigger price tag, as this type of finance can bring those kinds of vehicles within reach. It’s also a good choice if you upgrade your vehicle often, due to the flexibility available, particularly when it comes to the end of the term.
With PCP, you’re likely to pay a deposit, followed by a set number of monthly repayments that will depend on what you can afford, a pre-agreed mileage limit, the length of the term, and the predicted vehicle value at the end of it. At the end of the term, you’ll have the option to pay a final amount (known as a balloon payment), hand the vehicle back (providing that it’s in good condition and that you haven’t exceeded the mileage limit), or exchange it for your next car.
HP (Hire Purchase)
Whilst a Hire Purchase agreement operates similarly to PCP in terms of a deposit followed by monthly payments, there are some important differences. The most significant is that you’ll own the vehicle at the end of the term, so it’s one to look into if you’re pursuing long-term ownership of your dream car. There’s also no mileage limit to worry about!
Payments are, therefore, usually a little more expensive with HP finance, but again, these are calculated based on your deposit amount, the length of the term (which can be up to five years), and what you can afford each month.
How we approach car finance at EMG
It’s our job to support all EMG customers through every step of buying their next car, and this commitment extends to a straightforward and transparent finance process. From answering those initial questions to the agreement you choose, we’re here to help. You can even check if you’re eligible for vehicle finance for free on our website.
To get started, choose one of our brand new vehicles from Kia, Nissan, MG or Mazda, or one of over 500 quality used vehicles currently stocked across our sites in the East of England.