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Finance Explained



Our car finance solutions are tailored around you. Spread the cost of your next car purchase with finance from TOP CAR Financing a car can be confusing, but don't worry as Craig is trained to handle any questions you may have. He will be able to explain Hire Purchase and PCP car finance process to you in simple terms and layout all of the options available to you. In the meantime, please take a look below for an explanation on our HP and PCP products.

What is HP & PCP Used Car Finance

Buying a car is often a significant financial undertaking, so much so it is likely to be the second-largest expenditure in a lifetime after property. At TOP CAR we fully appreciate this level of commitment, that's why we work with a range of lenders to give you the best possible deals that are suitable for your financial needs.

We also believe that buying a car should be a fun and exciting experience, so whilst working hard to ensure competitive rates, we also work tirelessly to ensure that the finance process from start to finish is effortless.

Whatever your needs and requirements, at TOP CAR INVERNESS, we are perfectly placed to help you with used car finance.

So, you've seen your ideal car? No problem, with our HP or PCP finance plans, your next car could be more in reach than you think.

Let's take a look at two finance plans that could be available to you.

HP Finance Explained

HP finance, known as Hire Purchase, means that you will effectively hire your used car from a lender until the car has been paid for in full. One of the most common forms of used car finance, the loan is secured against the used car itself and you won't own the car fully until your final payment has been paid.

Choosing a HP finance agreement for purchasing your next used car, will give you the ability to:

  • 1. Spread out the cost over a repayment term to suit your budget
  • 2. Choose if you want to put down a deposit at the start of the term
  • 3. Allow you to own the vehicle outright at the end of the agreement

At the end of the term and once all payments have been made, the car will be yours and you become the legal owner. Furthermore, you are able to pay off any outstanding finance at any time throughout the term by asking for a settlement figure from the finance house, lender or speaking with Craig direct.

With Hire Purchase agreements, you are not restricted to a certain number of miles per year, meaning you can drive thousands of miles with no fear or repercussions and penalties. However, it is worth bearing in mind that your HP monthly payments will more than likely be larger than they potentially would be on a PCP used car finance plan.

Like with any finance plans, ensuring you fully understand the terms and conditions and risks associated with both is very important. At TOP CAR, we are a used car specialist in Inverness and the Highlands and Islands. When you visit TOP CAR, we would be more than happy to assist you with your used car finance.

PCP Finance Explained

A highly popular form of used car finance, you've no doubt heard of PCP before. Short for Personal Contract Purchase, PCP's are highly popular thanks to the level of flexibility they can afford a consumer over a traditional Hire Purchase agreement.

When signing up to PCP finance plan you'll most likely pay an initial deposit but not always, this is then subsequently followed by fixed monthly payments. However, you won't automatically become the owner of the car when your finance term comes to an end. At this stage, you'll most likely have three options:

  • 1. You can pay the outstanding finance amount and own the vehicle
  • 2. Part exchange the vehicle with Top Car Inverness and start another new agreement on a different vehicle.
  • 3. Return the car to the finance company

The amount you pay over the course of a PCP term is dedicated by several factors. These include;

  • 1. Deposit amount
  • 2. Mileage
  • 3. Cost of the used car
  • 4. The agreement interest rate
  • 5. The lenders predicted future value of the car at the completion of the finance term, also known as Guaranteed Minimum Future Value or GMFV.

Monthly payments on PCP will most likely be less than an HP deal, however, be aware that mileage limits apply. If you were to exceed the mileage stated in your term, expect to incur financial penalties.

If you are a careful driver that likes to take care of your car, you driver relatively low miles and like to frequently change your cars, say every three years, then a PCP finance plan for your next used car could well be the way forward. Craig will be able to discuss your needs in detail.

Hire Purchase

Fixed-rate monthly payments, quick to arrange

View our finance deals

Personal Contract Purchase

Low monthly payments, easy options to change car

View our finance deals

Top 10 Reasons to use Finance

Why finance your next car? Here are our top 10 reasons why it could be beneficial for you;

  • 1 Secure Way to Fund Your Next Vehicle
  • 2 Access to Over 15 Trusted Lenders
  • 3 MotoNovo Discount Shopping
  • 4 Tailored Finance Packages
  • 5 HP, PCP and Lease Purchase Options
  • 6 Low Payment Plans
  • 7 Competitive Fixed Interest Rates
  • 8 Simple 2 Minute Online Application
  • 9 Free Credit Score
  • 10 Refused Credit? We Can Help

Treating Customers Fairly (TCF)

Our six consumer outcomes explain what we want TCF to achieve for consumers. We will continue to use them as an important factor in guiding our responsibility to you, the customer.

Outcome 1:
Consumers can be confident that they are dealing with a firm where the fair treatment of customers is central to our corporate culture.

Outcome 2:
Products and services marketed and sold in the retail market are designed to meet the needs of identified consumer groups and are targeted accordingly.

Outcome 3:
Consumers are provided with clear information and are kept appropriately informed before, during and after the point of sale.

Outcome 4:
Where consumers receive advice, the advice is suitable and takes account of their circumstances.

Outcome 5:
Consumers are provided with products that perform as firms have led them to expect, and the associated service is of an acceptable standard and as they have been led to expect.

Outcome 6:
Consumers do not face unreasonable post-sale barriers imposed by firms to change product, switch provider, submit a claim or make a complaint.

2 minutes from A9

5 minutes away from Inverness Train Station

10 minutes away from Inverness Airport