Creditplus about Creditplus car finance terms - p

A to Z of car finance Terms

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Finance terms beginning with P

Part Exchange
Part exchanging your old car as part payment for your new car is a common process. Some dealers may pay you over the odds for your old car in order to sell you a new car. Furthermore, some dealers pay you a minimum cash fee for part exchange. Check the part exchange value here

Payment Protection Insurance
Payment Protection Insurance (PPI) is completely optional. PPI covers the borrower should they find themselves in circumstances that prevent them from making car loan repayments. This could include: inability to work, disability, unemployment, redundancy or serious illness. Check our payment protection insurance

Personal Contract Hire
PCH is similar to contract hire, but is more suited to the individual. Anyone who wants fixed cost motoring or is leaving a company car scheme should consider PCH. This finance option is good because it covers services, repairs, depreciation and disposal.

Personal Contract Purchases
Personal contract purchases (PCP) is a newer type of car finance, offered as an alternative to hire purchase loans. The vehicle is leased once a deposit is paided. The cost of the car is not spread over the loan period, meaning lower monthly repayments. When the loan comes to an end you can either pay a balloon payment, return the car to the dealer, or part exchange the car for a new car

Personal Lease
A personal lease is effective if you want to rent a car over a long period of time. When it comes to the end of the agreement the car is returned to the dealer. During the lease, some services should be included. The finance agreements are based on how many miles you expect to cover each year it is worth being aware of this amount because going over it can cost.