Flexible Vehicle Finance from Sparks Commercials

Personal Contract Purchase (PCP) is a finance deal available to help customers to purchase a vehicle. PCP finance involves the customer paying a deposit at the beginning of the agreement followed by monthly repayments over a 24, 36 or 48-month period.

During this time, the customer will pay off only a proportion of what the vehicle is worth at the time of purchase, minus the deposit and including interest.

If the customer wishes to own the vehicle outright at the end of the PCP agreement, a final balloon payment is required.

Hire Purchase finance (HP) enables the customer to purchase the vehicle outright.

HP finance involves spreading the cost over a series of fixed monthly instalments, which usually lasts between two and five years, with the customer owning the vehicle once the final payment is made.

Personal Contract Hire (PCH) works in a similar way to Personal Contract Purchase (PCP). It involves paying an initial deposit, followed by a series of set monthly payments.

The main difference between PCH and PCP finance is that the customer is only ever renting/leasing the vehicle with PCH. With PCP, the depreciation of the car is being paid off throughout the duration of the contract, and the car is never owned by the customer, unless they choose to pay a final balloon payment.

Once the agreement comes to an end, the vehicle is given back to the finance company.

When it comes to the various types of finance options available, there are several elements to be aware of and each option has pros as well as cons.

While both Hire Purchase (HP) and Personal Contract Purchase (PCP) involve low deposits and flexible repayment terms, with Hire Purchase (HP), you don't own the vehicle until the final payment, and this option tends to be more expensive for short-term agreements.

Exceeding the mileage and excessive damage to the vehicle on a Personal Contract Purchase (PCP) agreement will likely result in additional fees. You also have to pay the outstanding balance to keep the vehicle.

Personal Contract Hire (PCH) offers flexible payment terms and includes all servicing and maintenance costs, however, the vehicle is never yours and if you want to end the agreement early, you may have to pay an additional fee.

In order to apply for finance, you will need to provide:

• Proof of identity - a driving licence is usually the easiest method, however, a passport could be accepted, depending on the finance lender.
• Proof of income - you will need to provide three months' worth of payslips or bank statements in order to prove you are able to afford the monthly payments.
• Address history - your address history for the past three years will also need to be provided.

We provide a finance example on our website on each of our vehicles. However, the actual monthly repayment figure you would pay will depend on several factors, such as the sum of deposit put down, the duration of time the finance will be paid back over, as well as your personal credit rating.

On each of our used vehicles listed on our website, we provide in depth examples of the finance options available.

Often, vehicle finance dealers will offer what is known as a 'soft search'. This is a credit solution that enables lenders to assess your eligibility for car finance without carrying out a full credit check which could affect your credit rating.

A soft credit search gives a snapshot of your credit rating and provides lenders with the vital information which indicates whether or not you're likely to be approved for credit

The credit score required for vehicle finance differs between lenders and depends on a host of variables. Some lenders specialise in vehicle finance for customers who have lower credit scores, however, this could mean higher interest rates on payments.

If you need help with any part of the car finance process, contact the Sparks finance experts today.

Yes, you can. In order to do this, you will need to contact the DVLA and apply directly to them to have your plate changed.

If you have a Personal Contract Purchase (PCP) agreement and you're not planning on paying the final balloon payment to own the vehicle, your private plate will need to be removed roughly two months before your agreement ends.

While having a bad credit history doesn't make it impossible to obtain a finance deal, it can make it more difficult. Increasing your initial deposit could demonstrate to a lender that you can afford to pay more and are likely to make repayments on time.

Yes, swapping or trading a vehicle on finance is common. It is possible to swap your vehicle in the middle of an agreement. When the amount you owe on your vehicle is less than its trade-in value, this amount will be deducted from the sale value of the vehicle and given to you as a remainder.

Part exchange is available if you are nearing the end of your Hire Purchase (HP) agreement or if you are coming to the end of a Personal Contract Purchase (PCP) agreement. Depending on the value of your vehicle, it could be part-exchanged to cover the deposit on your next vehcile.

It is possible to pay off your finance early, however, most finance companies will enforce early repayment fees. These vary between lenders.

No, taking out a personal loan is a separate option.

A personal loan, if granted, is typically offered over a fixed period of monthly repayments with interest added each month. As a general rule, a personal loan has higher Annual Percentage Rates (APR) compared to the options from finance dealers.

Yes. When it comes to mortgage applications, banks and other providers are legally required to examine an applicant's finances ahead of granting a mortgage offer. Among the many factors being looked at is your credit rating, employment status, any debt, as well as your history of repaying loans.

Vehicle finance will be included in a mortgage lender's assessments. As a general rule, the larger the debt against your vehicle, the lower the amount you will be lent for a mortgage.

Once you turn 18, you could be eligible for car finance. If you are employed with a regular income, these are crucial factors the lenders will wish to see. Lenders will be looking for a good credit history, which at 18-years-old, might be difficult to prove. Ensure you apply to lenders who are offer the 'soft search' credit check method, as this won't negatively impact your credit score.

We do not charge fees for our Consumer Credit services. We may receive a payment(s) or other benefits from finance providers should you decide to enter into an agreement with them. The payment we receive may vary between finance providers and product types. The payment received does not impact the finance rate offered. Sparks are fully compliant regarding the latest FCA regulations.