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Car Finance Options Explained…

Car Finance Options Explained…

Posted on:

Finding the right car that’s suitable for you is an exciting experience but deciding how to pay for your new car can be a challenge as there are various options to choose from, some of which not everyone fully understands. Below we will explain the most popular forms of payment options, to help you decide which one is right for you.

Personal Contract Purchase (PCP)

Personal Contract Purchase is where you pay an initial deposit followed by a series of monthly payments. At the end of your contract you have three options of what to do with the car:

1. Hand it back to the dealer, as long as it is in good condition.
2. If you want to buy it outright, you pay the final payment, also known as the balloon payment.
3. If your car is worth more than the Guaranteed Future Value (GFV) then you can use that equity towards a deposit on a new car.

Please be aware that if you go over your agreed annual mileage, an additional cost will be required when your contract ends. This also applies to any major bumps/scrape beyond the usual wear and tear. It is important to thoroughly read through your contract as all terms & conditions are outlined.

Hire Purchase (HP)

Similar to PCP, you’ll pay a deposit and monthly payments over an agreed time, however you’re paying off the entire value of the car not the depreciation of the car. Unlike a PCP agreement, there will be no terms and conditions in relation to annual mileage and wear and tear, as at the end of the agreement, you will own the car.

Personal Contract Hire (PCH)

If you do not want to buy the car at the end of a contract period, nor are you looking to change your car during your agreement, then a Personal Contract Hire would be the best choice as it is essentially a long-term rental. Once the agreement ends, you will not own the car and it will be returned to the dealer. Charges will still apply if you go over your agreed annual mileage and if there is any damage on the car.

Personal Bank Loan

With a personal bank loan you can personally arrange to either take out the full amount of the purchase price of the car, or a certain amount if you are shortfall if you want to pay cash. The positives of this option is that you will own the car outright from the start, and you don’t need to worry about limiting your annual mileage or returning the car after so many years.

With all of the above options you need to consider if you can afford the monthly payments/cost before signing the contract. If you would like more information, do not hesitate to contact our Centres across the North East.

MOT Changes 2018

MOT Changes 2018

Posted on: 19th May 2018

As of 20th May 2018, the MOT test has undergone some of the most significant changes of its near 60-year history. Some of the changes include new defect categories, stricter rules for Diesel car emissions and some cars over 40-year-old will be exempt from the MOT test. The main changes which you need to know about are explained below.

Driving Test Changes In December 2017

Driving Test Changes In December 2017

Posted on: 4th Dec 2017

The Driver and Vehicle Standards Agency (DVSA) have confirmed that from today (Monday 4th December), changes to the driving test are now in effect.

Winter Driving Questions Unveiled: Part 1

Winter Driving Questions Unveiled: Part 1

Posted on: 15th Nov 2017

With the cold winter days fast approaching and the dark nights now here, driving can be a daunting experience. Whether you’re driving to work, the shops or travelling to a relative’s home for Christmas ensuring your car is in full working condition is essential. Sometimes though, we forget some of the rules of the road during the colder months;...

Richard Hardie Staff Race To The Finish Line At The Great North Run 2017

Richard Hardie Staff Race To The Finish Line At The Great North Run 2017

Posted on: 13th Sep 2017

Last weekend (Sunday 10th September) some of our fitness fanatic staff completed the Great North Run, which is the largest half marathon in the UK with over 57,000 runners participating each year! Do you want to find out how our team got on? Read their inspiring stories below…

A Guide To Child Seat Laws

A Guide To Child Seat Laws

Posted on: 28th Aug 2017

Check out our handy guide on the new child seat laws and everything you need to know about choosing the correct seat for your child.

Jeep Now Available At Richard Hardie Sunderland

Jeep Now Available At Richard Hardie Sunderland

Posted on: 28th Feb 2017

We have exciting news! The Jeep range now located at our Sunderland Centre, as well as in Newcastle. There is a great range of new Jeep models available in our showroom, including the all-new Jeep Renegade Night Eagle II and Jeep Renegade Desert Hawk. So wherever your adventurous side takes you, we’re sure we have the Jeep for you! Here is a bit ...

Valentine’s Day Road Trip Ideas

Valentine’s Day Road Trip Ideas

Posted on: 13th Feb 2017

Looking for something extra special to do this Valentine’s Day? How about a road trip? The UK has some wonderful places, especially around the North East. Here we share with you those places and how to make your Valentine’s Day that little more special.

Richard Hardie Raise over £378 for Save the Children

Richard Hardie Raise over £378 for Save the Children

Posted on: 30th Dec 2016

On Friday 16th December 2016 our Richard Hardie Centres in Ashington, Durham, Newcastle, Silverlink and Sunderland, flaunted their Christmas Jumpers to raise money for Save the Children. We had a great day playing various fundraising games and in all we raised £379.72 between our five Centres in the North East!

Winter Driving Tips

Winter Driving Tips

Posted on: 22nd Dec 2016

Here are our top winter driving tips to get you and your car through the next few months.