Car finance glossary | P

Part Exchange

Part exchange refers to when you use your old car as part payment on a new loan agreement. This can often act as a deposit for your finance agreement.
Part Exchange Explained >

Personal Contract Hire

Personal contract hire is a type of car leasing product offered to individuals instead of businesses. The main difference is that individuals cannot claim back VAT where as registered businesses can.
Personal Contract Hire Explained >

Personal Contract Purchase

Personal Contract Purchase (PCP) is a type of car finance product that has lower monthly payments than other products. At the end of the agreement, you have three options: pay a balloon payment and own the car, return the car to the lender, or part exchange the car as part of a new finance agreement. PCP is generally only available to consumers with good credit.
Personal Contract Purchase Explained >

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