• You get to drive the vehicle once you’ve paid the deposit.
• PCP is very flexible since it offers several options at the end of the agreement.
• If in the end you decide you don’t want the vehicle, you can hand it back without making the final balloon payment.
• There’s no need to be concerned with the future trade-in/resale value of the vehicle because PCP guarantees its minimum value at the end of the deal.
• Thanks to affordable deposit terms and low monthly payments, PCP provides the opportunity to buy a vehicle that might otherwise be out of your price range.

• You’ll be able to drive away a vehicle that you may not have managed to buy outright.
• Unlike a PCP or PCH contract, you won't need to estimate your mileage at the start of your Purchase Plan agreement, so you'll avoid excess mileage charges.
• Once you’ve made your final monthly payment, including the option to purchase fee, you'll have full ownership of the vehicle.

• You will only own the vehicle once you’ve paid the final balloon payment.
• It comes with an agreed annual mileage allowance which, if exceeded, will probably incur an extra charge.
• You must maintain the condition of the vehicle. Any damage beyond fair wear and tear will mean you’re liable for an extra fee.

• Monthly payments may be higher than some other finance options, such as PCP, as you're paying off the full value of the vehicle.
• You won’t be able to sell the vehicle without settling the finance.
• You won’t own the vehicle until you have made all of your repayments.
• You’ll need to keep the vehicle properly insured, maintained and in your possession until the full value is paid off.

You can normally settle your agreement early by asking the finance company to provide you with a settlement figure. However, the finance company will require you to pay off the difference between what your car or motorcycle is worth, and what you still owe and there may be a difference which is known as negative equity. On the other hand, you may find that at the end of your term your car or motorcycle is worth more than the Guaranteed Future Value, which means you will have some positive equity to contribute towards your next vehicle.

The short answer is yes, you can end your finance early. There are different provisions within each finance agreement that allows you to do just that. If you have got through two-thirds of the way through your finance agreement, the options to end the finance agreement early open up.

For a Purchase Plan agreement, there is an option of paying it off early through a settlement fee. A settlement fee covers the cost of any remaining unpaid instalments and interest payments remaining on the agreement. Once the settlement fee is paid, you take full ownership of the vehicle early.

Under a Personal Contract Purchase agreement, you can also pay a settlement fee for bringing the agreement to an end early. After that, you can choose to hand the vehicle back or you have a second option. Through a PCP agreement, you can take full ownership of the vehicle by paying off the remaining Guaranteed Minimum Future Value also known as a balloon payment.

Short for Annual Percentage Rate, APR is a crucial financial term used to represent the annual cost of borrowing funds from a financial institution or lender. It includes not only the interest rate charged on a loan but also any additional fees and costs associated with the borrowing. APR serves as a standardised way to compare and evaluate different loan offers, as it provides a comprehensive picture of the overall cost of credit over a one-year period. By considering the APR, borrowers can make informed decisions about which loan suits their financial situation best, ensuring transparency in the borrowing process.

Understanding your finance options when purchasing a new vehicle is of utmost importance. Making an informed decision about how to finance your vehicle is very important, ensuring that you can comfortably manage the monthly payments. At Lings, we recognise the significance of this step in the buying process, and we are committed to helping our customers navigate through their finance choices with clarity and confidence. Our knowledgeable team is here to guide you through various financing options, explaining the terms and conditions in a transparent manner. We strive to find the best financing solution tailored to your unique circumstances, making your buying experience at Lings smooth, convenient, and financially sound.