One of the most popular ways to purchase a new or used car is to buy it on finance. The Johnsons Cars team have decades of experience in providing vehicle finance and leasing in a trustworthy manner and can support you in finding a finance plan that makes sense.
The reason why car finance is so popular is that it allows you to split the purchase of your new or used car into easy to handle monthly payments. There are also several different finance options that can be personalised to you so you can find a package that suits your need.
There are several types of car finance, including Personal Contract Purchase, Contract Hire, and Hire Purchase. All of these offer their own unique benefits.
Possibly one of the simplest finance options to understand is a Hire Purchase, which is a great option if you want to own the car at the end of the finance agreement. You simply pay for your car in monthly instalments and during this period you are hiring the car. Once you have completed your last monthly payment*, then the ownership of the vehicle transfers to you.
A Personal Contract Purchase (PCP) is one of the most flexible finance options, giving you the option to own the car or hand it back at the end. At the start of the agreement, the finance company estimates how much the car will be worth at the end of the agreement and guarantees this value (so long as it remains in good condition). Your monthly payments then cover the difference between how much you buy the car for and the guaranteed future value. This means at the end of the agreement you have the option to: make a final payment*, often called the balloon payment, to take ownership of the vehicle; hand the vehicle back (charges may apply if the vehicle is not in a good condition or has exceeded excess mileage); part exchange it towards the purchase of your next vehicle.
A form of a car lease, Personal Contract Hire offers a simple solution to those looking for a new car and know that they will be looking to change car again after a set period of time. Very simply, you are renting the car for a chosen period of time with monthly payments. At the end of the PCH lease, the vehicle is returned and you are free to buy or lease another car. PCH is only available on new cars and there is not normally an option to buy at the end of the agreement.
Built for business, simple, flexible and cost-effective. Contract Hire helps you get the car you want, without needing to own it outright. With agreements available for business customers, Honda Contract Hire allows you to choose the length of rental agreement that suits you – from two to five years. To find out more, watch our BCH video.
*In addition there is an option to purchase fee which is typically £10 but will be stated on your finance quotation.
Johnsons have decades of experience working with Honda Financial Services. We’re always happy to help customers with any finance related queries so please feel free to get in touch.