Financing Made Simple Financing that makes it affordable to drive off our forecourt in a high-quality model for less. Got a Question?

Car finance made simple Here at Cawdor Cars in Ceredigion, Carmarthenshire and Pembrokeshire, we aim to help make purchasing any vehicle - new or used - as easy and affordable as possible. We not only do this by providing you with models that are competitively priced, but also by offering competitive rates of financing that make it affordable to drive off our forecourt in a high-quality model for less. Our sales experts will be able to secure the best possible value on any model you choose, so learn more about the financing options we have available today. We’re delighted to be able to provide you with a selection of financing plans to choose from including Hire Purchase, Personal Contract Hire, and Personal Contract Purchase agreements. Learn more about these various options below.

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Hire Purchase

As the most straightforward form of vehicle financing, Hire Purchase lets you pay a deposit, select a term, and pay off the balance through fixed monthly repayments. At the end of the agreement, you will be the outright owner of the vehicle and free to do with it as you please.

Personal Contract Hire

A Personal Contract Hire agreement is essentially a long-term lease that provides the flexibility to return the vehicle at the end of the chosen term. You will be required to pay an initial deposit and choose the length of term you wish to lease the vehicle for.

Personal Contract Purchase

One of the most affordable forms of vehicle purchasing, a PCP agreement is flexible and comes with low monthly repayments. Simply pay an initial deposit and agree the Guaranteed Future Value of the vehicle at the end of the term. You then pay off the difference between the sale price and this guaranteed figure, with the option to return the vehicle, take out new financing, or buy the model outright at the end of the term. Discover more about choosing the right form of financing for you by discussing your options with a member of the Cawdor Cars team today.

What is Personal Contract Purchase (PCP)?

PCP is a very popular form of car financing. It requires the payment of a deposit, followed by fixed monthly instalments – including an optional final payment – over an agreed length of time.

Before the final optional payment is made, you have three choices…

1. Keep the car

Make the final payment and the car is yours for good.

2. Hand the car back

Elect not to make the final payment and walk away – effectively, you will have leased the vehicle.

3. Select an upgraded model and begin a new contract

If the market value of the car turns out to be higher than was predicted, you’ll be able to put the difference towards a new agreement. (Subject to financial status.)

How does PCP work?

With PCP, affordable monthly instalments pay off a portion of the car’s value. This is typically the amount the lender predicts the vehicle will lose in value over the length of the agreement, minus the initial deposit. This means that a large proportion of the debt is left to pay at the end of the agreement, and is often referred to as a ‘balloon payment’. You can choose to make this final payment and keep the car, or walk away with no more to pay, or begin a new contract and choose a new car.

Will I get charged if I cancel my finance early?

As a borrower, you have a legal right to cancel your agreement early. However, you’ll need to have paid at least 50% of the ‘total payable amount’ of your car finance balance, plus any extra charges or fee.

What happens if the car is damaged while on finance?

If the damage is deemed to be more than fair wear and tear, you may have to pay an extra charge at the end of your finance contract.

What are the advantages of PCP?

It allows you to choose a car that you might otherwise be unable to afford.
It’s flexible – before the final balloon payment is made, you can decide to keep the car, hand it back or begin a new finance agreement.
Low monthly payments – PCP monthly payments tend to be lower than is available with other types of car financing.

What should I consider when opting for PCP?

You don’t own the car until you make the final balloon payment.
You risk losing the car if you fall behind on your repayments.
PCP financing tends to apply to more expensive vehicles (which, as we’ve mentioned, can also be seen as a positive).
There’s a mileage cap which, if exceeded, could lead to an extra fee.

What is Hire Purchase (HP)

One of the oldest forms of car financing, HP is very straightforward. You simply need to drop a deposit and pay fixed monthly instalments over an agreed length of time. Once the final payment is made, the car is yours to keep.

How does HP work?

It’s very straightforward. First, you’ll need to put down a deposit for the car you want to buy. In most cases, this is 10% of the vehicle’s value. Thereafter, the car’s value is paid off in equal monthly instalments, typically over a period of one to five years.

Will I get charged if I cancel my finance early?

As a borrower, voluntary termination of your financing agreement is your legal right, which is not to say you’ll be able to walk away with nothing more to pay. You’ll need to satisfy the minimum repayment amount, which is 50% of the total amount payable.

What happens if the car is damaged whilst on finance?

If any damages are incurred which are considered to be above normal wear and tear, you may be liable for extra charges.

What are the advantages of HP?

Relatively low deposit (usually 10% of the car’s total price).
Fixed interest rates – you’ll always know what you need to pay each month.
If your credit score is less than 100%, you might find it easier to get an HP deal than an unsecured loan. This is because the car is used as collateral for the loan.
Usually, there are no mileage restrictions.
Unlike PCP, there’s no large final payment to be made.

What should I consider when opting for HP?

Until the final instalment is paid, the car doesn’t belong to you – which means that if you encounter financial difficulties, it could be taken away.
Monthly payments are typically higher than with PCP or leasing deals.

© Cawdor Cars

New Road, Newcastle Emlyn, United Kingdom, SA38 9BA

Reg Office: Cawdor Cars (Newcastle Emlyn) Ltd, New Road, Newcastle Emlyn, SA38 9BA

Reg. Company Number: 1875002

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Financial disclosure

Cawdor Cars Newcastle Emlyn Limited is an Appointed Representative of Automotive Compliance Ltd, who is authorised and regulated by the Financial Conduct Authority (FCA No 497010). Automotive Compliance Ltd’s permissions as a Principal Firm allows Cawdor Cars Newcastle Emlyn Limited to act as a credit broker, not as a lender, for the introduction to a limited number of lenders and to act as an agent on behalf of the insurer for insurance distribution activities only. We can introduce you to a selected panel of lenders, which includes manufacturer lenders linked directly to the franchises that we represent. An introduction to a lender does not amount to independent financial advice and we act as their agent for this introduction. Our approach is to introduce you first to the manufacturer lender linked directly to the particular franchise you are purchasing your vehicle from, who are usually able to offer the best available package for you, taking into account both interest rates and other contributions. If they are unable to make you an offer of finance, we then seek to introduce you to whichever of the other lenders on our panel is able to make the next best offer of finance for you. Our aim is to secure the best deal you are eligible for from our panel of lenders. Lenders may pay a fixed commission to us for introducing you to them, calculated by reference to the vehicle model or amount you borrow. Different lenders may pay different commissions for such introductions, and manufacturer lenders linked directly to the franchises that we represent may also provide preferential rates to us for the funding of our vehicle stock and also provide financial support for our training and marketing. But any such amounts they and other lenders pay us will not affect the amounts you pay under your finance agreement, all of which are set by the lender concerned. Any commission amount we earn will be disclosed as part of our sales process and you will be informed of the amount after the proposal has been accepted and in good time before signing any agreement, you will be required to sign a commission disclosure document confirming you are aware of the commission being paid by the relevant lender. All finance applications are subject to status, terms and conditions apply, UK residents only, 18’s or over. Guarantees may be required.

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Hire Purchase

Personal Contract Hire

Personal Contract Purchase

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Car finance made simple

What is Personal Contract Purchase (PCP)?

How does PCP work?

Will I get charged if I cancel my finance early?

What happens if the car is damaged while on finance?

What are the advantages of PCP?

What should I consider when opting for PCP?

What is Hire Purchase (HP)

How does HP work?

Will I get charged if I cancel my finance early?

What happens if the car is damaged whilst on finance?

What are the advantages of HP?

What should I consider when opting for HP?

© Cawdor Cars

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Financial disclosure