If you're thinking about financing your next car, at Sytner Group we want to make the process easy to understand ensuring you are clear on your options and comfortable with the financial commitment during the full term of any agreement.
We can introduce you to a limited number of carefully selected lenders and finance products to assist you with your vehicle purchase (available for both our private individual and business user customers). Information on the funding products can be given to help you make an informed decision as to which product is most suitable for you.
It is important you ensure that whichever option you choose it is affordable to you during the term of your agreement and that you factor in the running costs that are attributed to your vehicle ownership.
PCP, HP or PCH?
What's the difference and how do these work?
Personal Contract Purchase (PCP)
How does it work?
Choose the car (new or used) you like
Choose the most suitable repayment period
Agree on your annual mileage
You are given a Guaranteed Minimum Future Value which becomes your optional final payment
You decide on the deposit and payments suitable for your budget
At the end there are four choices for you; part exchange your vehicle for another car, keep the car and pay the final payment, or keep the car and refinance the final payment. You may also hand the car back the lender with nothing further to pay (subject to condition & mileage).
PCP may be right for you if:
You want a low deposit and monthly payment • You want flexibility to exchange, return or buy your car at the end of your agreements
You want to change your car regularly and avoid some maintenance costs
PCP may not be suitable for:
Customers who are deemed to be high mileage users/drivers (e.g. in excess of 40,000 pa*)
Customers who want to keep their car for a longer period (e.g. 5 year)
*(Maximum mileage parameters will apply with funders)
Hire Purchase (HP)
How does it work?
Choose the car (new or used) you like
Choose the most suitable repayment period between 24 and 60 months
You agree on a deposit and monthly repayment to suit your budget
At the end of the agreement, as long as all the payments have been made, the car is yours.
HP may be right for you if:
You want to own the car outright at the end of your purchase agreement
You like to budget - you’ll know the exact payment amount each month
You have a large deposit available
HP may not be suitable if:
You want the flexibility of lower monthly payments.
You intend to change your car in 2-4 years’ time.
Personal Contract Hire (PCH)
How does it work?
Choose the car you want to hire.
Choose the term duration, mileage limit, and monthly payment amount.
Decide whether you want to take care of the maintenance or include a maintenance package as part of your agreement.
At the end of the lease term, return the vehicle, as long as it meets the agreed mileage and condition requirements.
PCH might be right for you if:
You don't want to own the car at the end of the term.
You like to have Fixed monthly payments with an option of having your servicing and maintenance costs fixed for the term.
You don't want to worry over depreciation of the future value of your car.
You don't want the hassle trying to sell your car at the end of the contract.
PCH may not be suitable if:
You want to have ownership of the vehicle at any time.
You want the flexibility to change your car part way through the contract.
If you want to retain any equity in the vehicle at the end of the agreement.
Calculating your average yearly mileage
Before applying for PCP or PCH finance, you will need a rough idea of how many miles you drive per year, as this will be factored into how much you will pay each month, and the Guaranteed Minimum Future Value (PCP only). Use our handy calculator below to gain a rough idea of your annual mileage, or use Google Maps for a more accurate figure.
| Time spent driving per day | Average monthly mileage | Average yearly mileage |
|---|---|---|
| 30 mins | 608 miles | 7,300 miles |
| 1 hour | 1,217 miles | 14,600 miles |
| 2 hours | 2,433 miles | 29,200 miles |
| 3 hours | 3,650 miles | 43,800 miles |
Approximate values based on a constant speed of 40 mph. Actual mileage will vary based on real world factors.
Note that your annual mileage will be greater if you regularly drive your car outside of your daily commute.
Frequently Asked Questions
You are eligible to apply for finance if; you are aged 18 or over, have an annual income that comfortably covers your monthly payments, have a current bank or building society account in the UK and you are free of bankruptcy.
You will need to be able to provide 3 years address and employment history, along with photographic personal identification i.e. Driving Licence.
Yes you will need to have a full valid driving licence which must be in date in order to apply for finance.
We'll give you an instant finance decision wherever possible, but sometimes it may take longer. We'll keep you updated on your application progress.
Applying for car finance will require what's referred to as a ‘hard search' of your credit report. This is likely to show on your credit score, and if you have several hard searches on your report in quick succession, it can have a negative impact.
By providing us with your personal details, you will be giving us authority to submit credit application on your behalf to our credit providers, each of which may record a search on your credit file. For your reassurance, we will use a maximum of four credit providers and therefore, no more than four credit searches will be registered.
Yes. When you are using our finance quote calculator, you can use our part exchange tool to value your current vehicle. The value of your part exchange (less any outstanding finance) can then be applied to your quote as part of your deposit.
The value of your part exchange may well cover any outstanding finance you have. If not, simply contact the dealership where your chosen car is located via phone or email. The team will be happy to help and will talk you through your options.
We offer a comprehensive range of financial products to suit individual and business needs from a limited number of lenders. Please speak to your local dealership who will be able to explain the various funding methods, so you can make an informed decision.
At every Sytner Group Business, we have a team of Business Managers that will be happy to assist you with any other questions or information you may require. Get in contact with them by finding your nearest dealership