At Vauxhall Finance you can get into a new Vauxhall by using our PCP or Contract Hire products. Read below to compare the advantages and disadvantages of each product and work out which is the right option for you.
Don’t forget, we also offer Conditional Sale finance as an alternative.
PCP (Personal Contract Purchase) is a finance product where you pay a deposit at the start of the agreement, followed by fixed monthly payments for the rest of the contract. You will also need to tell us your anticipated mileage, and any additional miles above this will be charged per mile if you hand back the vehicle.
A Guaranteed Future Value is set on your vehicle. This is the minimum value you will expect to get for the car at the end of the contract if you hand it back or use it as a part-exchange on a new Vauxhall (subject to mileage and condition checks). With PCP you are effectively paying the expected decline in value of the vehicle over the length of the contract plus the interest on the amount financed.
PCP contracts are popular with those that like to get behind the wheel of a new car every few years. Monthly payments under a PCP contract tend to be lower than with Conditional Sale.
To own your car outright and keep it after the contract, you will need to pay the Guaranteed Future Value to us, and you won’t have to pay charges for excess mileage or damage.
At Vauxhall Finance we offer a product called Contract Hire which is a long-term hire agreement. You will pay an advance rental period upfront and then a fixed monthly payment for the rest of the contract. Again, you will also set the mileage you expect to do in the car upfront. Any excess mileage will be payable at the agreed rate.
At the end of the contract you must hand your car back. If it applies, you will need to pay for any damage caused to the vehicle and any excess mileage.
The below table explains the key differences and similarities between the Contract Hire and PCP products available at your local Vauxhall retailer.
|Excess Mileage Charges||†|
|Road Tax Included|
|Option to Buy||*|
* If you pay the Guaranteed Future Value you will take ownership of the car at the end of the contract.
** A maintenance package is available for an additional fee
† Damage and excess mileage are only payable if the vehicle is handed back
At the end of your agreement you must hand your car back to the dealership and your vehicle is subject to mileage and condition checks.
With PCP you have three options at the end of your contract. You can either choose to hand your car back with no fees to pay (subject to mileage and condition checks), use your car as a part-exchange against a new Vauxhall or alternatively you can pay off the final payment (Guaranteed Future Value) and ownership will automatically transfer to you. Paying off the GFV is the default option if you don’t let us know before the end of the contract.
Whether you pay road tax, or Vehicle Excise Duty (VED) depends on what type of contract you are on.
With a Contract Hire agreement, road tax is already included in your payments.
As PCP is a finance agreement, you will be responsible for paying the road tax on the vehicle.