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When it comes to choosing how to pay for a new car, whether you have savings, part-exchange your old vehicle or opt for one of our flexible car finance options, such as Personal Contract Purchase (PCP), at Caffyns MG, we are here to help find the perfect option for you. Our helpful team can tailor finance options to suit your monthly budget, how much deposit you have and the length you'd like to finance the vehicle.

Why Choose Car Finance?

When customers choose to finance their new vehicle, convenience and time are often the most common deciding factors. When purchasing a new car, saving the full on the road price could take years. That's why customers frequently opt to pay a small deposit and pay the rest monthly, which also means you can have the car sooner. Some finance products don't require a deposit at all, so people can be on the road within a few weeks.

What's more, finance options such as PCP provide the opportunity to regularly swap their car. PCP offers an optional payment at the end to own the car, or customers can give it back and take out finance on a new car. This is ideal for people who don’t want to deal with the maintenance costs that older cars typically incur.

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Personal Contract Purchase (PCP)

PCP car financing requires monthly instalments with an optional final payment at the end of the desired contract length to buy the car outright. When the final payment is not paid, the customer can either hand the car back to MG without paying anything else (as long as there is no damage and the mileage limit has not been exceeded), or you can part-exchange it for a new vehicle.

The benefits of PCP include:

  • No deposit required (though having a cash deposit will lower your monthly repayments)
  • Fixed interest on payments
  • The option to change cars at the end of your payment period

Purchase Plan

Similarly to PCP, a purchase plan requires monthly payments spread over a set amount of months, which typically range between 24 and 60 months (or 2-5 years). The difference with a purchase plan is the choice to finance the total cost of the car, or to put down a deposit and finance the remaining amount. Plus, all payments are at a fixed interest rate similarly to PCP.

Some of the reasons people may choose a Purchase Plan are:

  • No final balloon payment – the car belongs to you after you have made all of the monthly payments
  • No limitations on mileage – as you won’t be handing the car back, you’re not required to stick within an annual mileage
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