1. First you’ll need to pass a creditworthiness assessment.
2. Then you’ll need to pay a deposit, usually 10% of the value of the vehicle.
3. You’ll then be able to use the car, but remember you don’t own it yet. You’ll also need to make your payments for the duration of the contract.
4. When the contract is up, you’ll need to decide if you want to keep the car, return it, or use its value to act as a deposit on a new PCP.
5. If you’re not going to keep the car, you can hand it back without any further payments.
The decision to use PCP Car Finance depends on your personal situation. If you’re keen to have a new car on your driveway every few years, then it enables you to get more for your money. However, if you prefer to own your car at the end of any finance agreement, then PCP probably isn’t the best deal for you unless you are happy and able to afford the final payment at the end of the agreement.
You can settle a PCP deal at any stage by paying the settlement figure – in other words, the outstanding amount at that moment in time – which you can request from your lender. The car is then yours to keep or resell. The lender can only charge you up to two months' interest on the balance when calculating the settlement figure, so this should reduce the amount of interest you pay compared with continuing with the finance.
Hire purchase (HP) is a hire agreement that gives you the option to own the car if and when you get to the end of the agreement. Before you sign up for a HP deal, you’ll need to pass a credit check in order to ensure affordability. HP deals are normally fixed cost, meaning the interest rate – or annual percentage rate – is set before the contract starts. The loan term is also fixed over a set number of years, and the loan is secured against the car you buy. This means if you can’t keep up with your repayments, the finance company could repossess your car. You will be the registered keeper of the vehicle and be responsible for insuring, taxing and maintaining it, but the finance company is the legal owner of the car until the loan is fully repaid. At the end of the deal, you’ll pay an ‘option to purchase’ fee if you want to own the car outright.
Yes, if you want to settle a hire purchase agreement either partially or in full before the end of the agreement, you’re entitled to make early repayments to your finance company, once the full amount has been repaid and you legally own the car, you’re free to sell it.
The manufacturer's branded car finance plan is a version of Personal Contract Purchase (PCP). It gives you the most choices when the agreement comes to an end. PCP is a potential route to owning a Nissan.
Nissan cars on finance
Every model in the new Nissan range can be purchased under a finance agreement. Whether you prefer the electric LEAF, the iconic Micra and Juke, or the confident Qashqai, you always have plenty of options. Benefit from trademark Nissan variety, as buying on finance has no impact on the trim levels, colours, finishes and accessories on offer.
Finance could give you the ability to buy a car that may otherwise be outside of your budget. It also means you do not need to take out a loan in order to buy. Most – but not all – agreements are subject to mileage limits. If you typically only drive short distances, you could make further savings by reducing the mileage on your finance plan.