What is Personal Contract Purchase (PCP)?
One of the most popular forms of vehicle financing, Personal Contract Purchase plans enable you to benefit from low monthly repayments over a fixed period of time. Following a deposit, you will continue to pay monthly instalments that cover the depreciation in value from the vehicle price to the Guaranteed Future Value. At the end of the agreement, you are free to return the vehicle to the dealership with no further obligation.

What are the advantages of PCP?

  • Lower monthly repayments compared to alternative financing plans
  • Greater flexibility, with the option of either buying or returning the vehicle at the end of the agreement
  • Should the vehicle be worth more than the Guaranteed Future Value, this equity can be used as a deposit on a new vehicle

What should you consider when opting for PCP?

  • That you’re happy to return the vehicle at the end of the agreement or pay the optional balloon payment
  • Your mileage will be agreed at the beginning of the contract and any miles in excess of this will be charged extra
  • You are not allowed to sell the vehicle without settling the agreement in full
  • All service and maintenance needs to be upheld according to the terms of the agreement

Can I settle my PCP agreement early?

Settling your PCP agreement early can be achieved by requesting a settlement figure from your financing company. You will also be required to pay the difference between the vehicle value and what you owe, which is known as negative equity.

What is Hire Purchase (HP)?
Hire Purchase enables you to simply buy your vehicle while spreading the cost over an agreed period of time. You begin by paying a deposit and then paying off the remaining balance through fixed monthly instalments. At the end of the agreement, you become the full owner of the vehicle.

What are the advantages of HP?​

  • Become the full owner of your new or used Mazda at the end of the term
  • Spread the cost of purchasing into manageable monthly repayments
  • No limitations on mileage or use as per PCP agreements

What should you consider when opting for HP?

  • Monthly repayments will often be greater than those on a PCP arrangement
  • You cannot sell the vehicle without first settling your agreement
  • You will only become the full owner once all payments have been made

Can I settle my HP agreement early?

To settle your agreement early, you should get in touch with the financing company and request an early settlement figure. This will also include any difference between the value of the vehicle and how much you still owe - a figure known as negative equity.

What product is best for me?

Choosing the right vehicle and the right purchasing plan can best be achieved through the support and advice of our experienced sales team. We will be able to answer any questions you may have and help detail the most affordable plan for you. Get in touch with us at RRG Mazda today to find out more.