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We’ve put together some of the most frequently asked questions about buying a car on finance. If you can’t see the answer you require please contact us

WHY SHOULD I PURCHASE A CAR ON FINANCE?

Finance is a great way to fund a vehicle. It can be a helpful option if you don’t have all of the funds available at the time of purchasing your new vehicle and it also allows you to spread payments over a set amount of time.

Even if you do have all of the funds available at the time of purchase, you may prefer to take out a finance agreement instead of paying the full cost of the vehicle in one lump sum. This could free up your money for any emergencies or expenses that may arise.

HOW LONG WILL I REPAY MY FINANCE FOR?

You will decide how long your finance will last when you sign the agreement. This is typically between 12-60 months.

WHAT IS THE DIFFERENCE BETWEEN PCP AND HP FINANCE?

Hire Purchase (HP)
Hire purchase or HP is an arrangement where you hire the car from a finance company until you’ve fully paid for it. The finance company own the vehicle until the final payment is made, after which time it’s yours to keep. Hire purchase tends to require a deposit usually 10% of the car’s value. The higher the deposit, the lower the monthly payments.

Personal Contract Purchase (PCP)
Personal contract purchase or PCP is similar to a hire purchase. You’re likely to be asked to pay an initial deposit, and then monthly payments for a set period. The higher your deposit, generally, the lower the monthly payments. Even with the deposit though, monthly payments are typically lower than you’d find with a hire purchase deal or a personal loan. This is because you’ll be paying off the value of the depreciation of the car, not the full value of the car.

At the end of the agreement, if you decide you want to keep the car, you’ll need to pay what’s known as a ‘balloon payment’. This covers the cost of the vehicle and transfers ownership from the finance company to you. If you don’t want to keep the vehicle you can give it back, start a new PCP deal and get a new car or part exchange it for another vehicle.

HOW DO I REQUEST A FINANCE SETTLEMENT?

In order to request a finance settlement, you will need to contact us, either using the online form, emailing us on daysfinance@days.co.uk or calling us on 01792 222111. Please ensure you provide as much information as possible including your name, policy number and vehicle information.

WHAT HAPPENS IF I CAN’T MAKE MY REPAYMENTS?

If you are struggling to make your repayments, you must contact us as soon as possible. Please note that multiple missed payments can result in your vehicle becoming repossessed.

HOW DO I APPLY FOR FINANCE?

In order to apply for finance, please click here.

HOW DO I CHANGE MY ADDRESS/ CONTACT DETAILS?

You will need to submit a request in writing to change any of your personal information that we have on file for you. Please ensure that your signature is included on your request.

Please send this to: Day’s Finance, Day’s Motor Group, Beaufort Road, Plasmarl, Swansea, SA6 8HR

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