PCP Explained

Finance Explained

Car Loan Advisor

Here at Victory Car Sales we provide a wide range of Finance solutions with the benefits, comfort, security and reputation associated with major financial institutions.

Very few people have unlimited budgets, some have even had past problems relating to finance. We work closely with a wide selection of lenders such as Motonovo, Close Brothers, Blue Motor and Northridge Finance to be able to offer a range of financial packages to suit your personal circumstances, whether that be HP, PCP, leasing or balloon deal for yourself or for your business, So, if you are looking to buy and finance a quality used vehicle, than contact us today.

If you see a vehicle you like on our online showroom, and are considering finance, click the “Apply for Finance” Tab and you can quote and propose yourself with Motonovo’s easy to follow finance application


Hire purchase is a simple, straightforward way to spread the cost of buying a new car. It´s fixed rate finance - with a fixed monthly payment.

The deposit you pay is flexible - typically between 0-50% of the vehicle cost. The remaining balance, plus fixed interest, is repaid in equal instalments over an agreed period (12-60 months).

Why consider Hire Purchase?

  • Low deposit - keeps valuable personal or business cash available
  • Control - you decide the deposit, you decide the term
  • Fixed monthly payment - perfect for budgeting
  • Flexibility - doesn´t compromise your other lines of credit
  • Assets - you gain vehicle ownership
  • Tax benefits - Tax allowances for business users
  • VAT free - no VAT on payments

Personal Contract Purchase is highly attractive and increasingly popular. It combines low, fixed monthly payments with exceptional flexibility at the end of the agreement.

Your car´s guaranteed future value is calculated (based on agreed mileage and age) and becomes deferred as a final payment (balloon).

PCP is ideal if you're opting out of a company car scheme. You use your company car allowance to fund your PCP monthly payments without paying company car tax.

Crucially, you don´t commit to buying the car at the outset. Instead, you use it for 24-48 months, deciding at the end of the agreement what you want to do. Either:

  • Buy the car by paying an agreed minimum residual value
  • Part-exchange the vehicle for another
  • Sell the vehicle privately (settling the balloon)
  • Or, subject to mileage and condition, return the car with nothing more to pay (e.g. if depreciation resulted in negative equity)