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Car Finance Explained

Used Finance Options across Scarborough

Here at Hodgson Car Sales, we proudly offer finance options across our entire range of our used cars available in Scarborough. As well as our competitive prices, we have competitive offers too. With a number of finance deals available, we are confident that we will find the right deal to suit your lifestyle. With finance increasingly becoming a popular option, Hodgson’s understand the importance of used car finance. Our team are on hand to discuss your requirements and guide you into securing your new car with us.

Using a finance option means you don’t have to pay the full cost of the vehicle when you buy with us. Meaning you can evenly spread the cost of your new car over a number of months. A car finance plan is a flexible alternative and we can help tailor your deal to match your needs. We have two options available: Personal Contract Purchase (PCP) and Hire Purchase (HP). Both PCP and HP are designed and available to make your purchase experience more enjoyable and more affordable. Read our explanations below to find out more about our PCP and HP finance options.

You can contact our finance team at Hodgson Car Sales today, either email us by clicking the button below or call our dealership in Scarborough. Browse our selection of used cars and use our interactive finance calculators on our adverts to see what your monthly costs could be. We also have the option available to search for your next car by monthly price. 

About PCP Finance


Personal Contract Purchase (PCP)

Personal Contract Purchase is an affordable monthly solution. Ideal for drivers who wish to change their cars between 2-4-year intervals. PCP allows you to defer part of the total vehicle cost until the end of the agreement. The cost which is deferred, is know as the Optional Final Payment – or the Guaranteed Minimum Future Value of the vehicle. The Optional Final Payment figure is determined by the finance company and it based upon the annual mileage of the car, as selected as part of the PCP agreement.

The evenly spread monthly payments, as part of your Personal Contract Purchase option, are calculated based on the price of the car. The total cost of the monthly payments, is minus of the deposit and the Optional Final Payment. Plus, any interest and fees. If you have a current car to part exchange, we can provide a free valuation. Of which that price can be put towards your new car’s deposit.

At the end of your financial agreement, you can choose from one of the following options:

  • Change your car for a new one (part-exchange). If your car is valued more than the previously agreed Optional Final Payment, you can use the difference as a deposit on your new car.
  • Pay the Optional Final Payment and keep your car with nothing more to pay.
  • Give your car back with nothing more to pay. This is subject to the agreed mileage (excess mileage charges may apply) and the vehicle condition.

About HP Finance

Hire Purchase

Hire Purchase distributes the full cost of the vehicle into fixed monthly payments. HP is a straight forward option in helping you purchase and own your vehicle outright. Agreement terms for Hire Purchase differ between 12-60 months so you can have more finance options for your monthly costs. The monthly repayments will typically be higher than those in a PCP agreement, as you are paying off the full value of your car. Therefore, at the end of your HP agreement, you will be the full owner.

To set up your new HP Finance option, you will:

  • Select your used vehicle you’d like to purchase
  • Choose your monthly repayment period (between 12 to 60 months)
  • Decide on your deposit and monthly amounts

There are no minimum or maximum deposits for a Hire Purchase agreement, so you have more flexibility upon setting up. Once you have agreed on a suitable HP finance option, you can pay the deposit and enjoy a one-month payment holiday before your first monthly payment is due. At the end of your finance contract, you will have full ownership of your car once the final payment and option to purchase fee have been settled.

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