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Finance Specialists

Fleet Sales have a dedicated team of finance experts waiting to help with your enquiry.

We have relationships with high street lenders and specialist motoring finance houses too, that is why we have helped hundreds of customers secure the best finance deal for their budget.

Our expertise with finance means that even if you have a poor credit rating we can help arrange finance for you.

2 Minute Application

Complete our simple to use online form below and once submitted, we will get back to you as soon as possible.

What is PCP finance?

Personal contract purchase (PCP) is a flexible way to finance a vehicle. You pay an initial deposit, followed by monthly payments including interest. At the end of the agreement you then have three options:

  • Buy the vehicle by paying the optional final payment (also known as a balloon payment)
  • Return the vehicle and walk away
  • Or get a new vehicle on a new agreement. Terms and conditions will apply, and there may be additional fees.

What are the benefits of PCP finance?

If you're thinking of changing your car in a few years' time, PCP could be the most suitable way to finance your car

Generally, you'll pay a fixed amount each month, so you can budget easily

The options are open-ended, so there is more flexibility to either:

  • Pay what's left of the vehicle's value at the end of the agreement (also known as a balloon payment or GMFV - Guaranteed Minimum Future Value) to own the car
  • Hand the car back to the lender and walk away (as long as the car is not damaged and you have not gone over your agreed mileage allowance)
  • Part exchange the car for your next vehicle purchase. If the car is worth more than the GMFV at this point, you can use this additional value towards a deposit on your next car. Monthly payments are usually lower than with other finance types like HP and CS.

You can choose from lots of cars, and you can easily change cars at the end of your contract if you fancy something different Some PCP agreements include servicing and maintenance. Convenient!

Dealers and manufacturers sometimes offer useful deals on PCP contracts, including help towards your deposit

Are there any disadvantages of PCP finance?

  • You may need a higher deposit for PCP than you would for HP/CS
  • You don't own the car until you pay the optional final payment. Until this point, the finance company owns the car and you are classed as its legal keeper.
  • The car may be repossessed if you don't keep up with payments or if you breach any terms of the agreement
  • A seller may offer a 0% APR deal. This sometimes means there is a bigger final payment (balloon payment) or higher charges for excess mileage or damage.
  • The car can't be sold before you make your final payment, unless you contact the finance company and agree a termination value
  • You can't sell or modify the car without permission, until you are the legal owner
  • You could be charged additional fees if you go over your pre-arranged yearly mileage limit and want to hand the car back
  • You will have to pay for repairs if you damage the car and want to hand the car back
  • If you know you want to own the car at the end of your finance period, HP (Hire Purchase) or a personal loan is often a cheaper option

What will I need when applying for PCP finance?

To apply for a PCP (Personal Contract Purchase) finance agreement, you'll need an up-to-date credit history report, proof of address, proof of income, ID, driving licence and personal details such as your legal name and address. You must be 18 years or over and be a permanent UK resident.

Do I need a credit check for PCP finance?

Yes, the lender will perform a credit check with credit reference agencies when you apply. This will appear on your credit file as an application for credit - Please note: too many checks in a short space of time can affect your credit rating so try to avoid that if possible.

Am I responsible for tax and insurance?

Yes, you will be responsible for the car's upkeep including insurance and tax. Some PCP deals include insurance, but most don't, so make sure you check this.

You may need a comprehensive insurance premium, as the car belongs to the lender, so factor this into your budget as this can be expensive.

You'll also be responsible for the car's annual MOT and servicing if it's over three years old.

What is a mileage limit?

A car with a high mileage will be worth less at the end of the contract than one with a low mileage, therefore low mileage contracts tend to be cheaper each month.

You'll set a mileage limit at the start of your contract - this is how far you'll drive the car each year, or each month.

What is maintenance and fair wear and tear?

Remember you do not own the car until you pay the final optional payment. This means the car will need to be in good condition if you decide to hand the car back or swap it.

Fair wear and tear, such as worn fabric on the seats, is fine, but you'll likely be asked to pay to repair on large scratches, dents or other damage on the car.

If you damage the car while driving it, check your contract to see where you can take it for repairs. If you've got a deal with the manufacturer, they may stipulate that you visit an approved servicing centre. Failure to do so could void your warranty.

Can I end a PCP contract early?

You have the right to end your finance agreement and you can do so at any time and for any reason. (e.g. you might decide you are unable to make the monthly payments).

To end your contract you would need to write to the finance company that you make your payments to. You will need to pay 50% (half) of the total amount payable (this will be shown on your original agreement) AND you will need to return the car. If you have already paid at least this amount plus any overdue payments and have taken reasonable care of the car, you will not have to pay any more. You will not receive any refund of any payments you have made up to or beyond that point.

This is known as Voluntary Termination (VT) and, if you do not fully repay what you owe under your agreement, this could be recorded with the credit reference agencies and may have an effect on your ability to borrow in the future.

What is HP/CS finance?

Hire purchase (HP) / Conditional sale (CS) is a flexible way to finance a vehicle. You pay a deposit upfront, then make monthly payments to pay off the remaining amount, plus interest and any additional fees. With HP/CS, you will own the vehicle at the end of the agreement.

What are the benefits of HP/CS finance?

  • You can own the car outright at the end of your agreement, once you have paid your 'Option to purchase fee' (a nominal fee to transfer ownership of the car into your name)
  • HP and CS agreements generally offer equal monthly payments and fixed interest rates, which makes them easy to budget for. Some HP/CS agreements do, however, include a larger final value to pay, which will be explained to you if applicable.
  • The deposit you put down can be relatively low, often around 10% of the car's value, though some lenders may require a minimum deposit amount
  • Flexible contract lengths and repayment terms mean you can find a contract length and price that suits you
  • Buying through HP/CS gives you some extra protection for a period of time if there's a problem with the car
  • Unlike with a PCP agreement, you're not limited to mileage restrictions or other conditions (like wear and tear). You are simply required to keep the car serviced and in good condition until you legally own the car at the end of your agreement.

Are there any disadvantages of HP/CS finance?

  • Monthly payments are generally higher than with other types of finance products like PCP
  • The car is at risk of repossession if you breach any terms of the agreement or if you don't maintain your repayments
  • The car can't be sold before you make your final payment and interest, unless you contact the finance company and agree to pay a termination value
  • You can't sell or modify the car without permission from the finance provider, until you are the legal owner
  • You don't own the car until you pay the final payment (including the 'Option to Purchase fee' if applicable). Until this point, the finance company owns the car and you are classed as its legal keeper, not the owner.

What will I need if I want to apply for HP/CS finance?

To apply for a HP (Hire Purchase) or CS (Conditional Sale) finance agreement, you'll need an up-to-date credit history report, proof of address, proof of income, ID, driving licence and personal details such as your legal name and address. You must be 18 years or over and a permanent resident of the UK.

Do I need a credit check for HP/CS finance?

Yes, the lender will perform a credit check with credit reference agencies when you apply. This will appear on your credit file as an application for credit - too many checks in a short space of time can affect your credit rating so try to avoid that if possible.

What's the difference between HP (Hire Purchase) and CS (Conditional Sale)?

The main difference between Hire Purchase and Conditional Sale contracts is that CS contracts do not include a final 'Option to Purchase' fee, like you get with an HP contract. Instead, with a CS contract it is a condition that you purchase the car from the beginning, and you will automatically become the vehicle owner once you've made all your agreed monthly repayments to the lender.

What is the 'Option to Purchase' fee on HP contracts?

Once you've made all your agreed monthly payments, you may have one final 'Option to Purchase' fee to pay before you officially own the car. This can sometimes be build into your final monthly payment, or sometimes it is simply a very small, nominal fee. You will find this payment amount detailed in your contract before you sign it.

Can I end a HP or CS contract early?

You have the right to end your finance agreement and you can do so at any time and for any reason. (e.g. you might decide you are unable to make the monthly payments).

To end your contract you would need to write to the finance company that you make your payments to. You will need to pay 50% (half) of the total amount payable (this will be shown on your original agreement) AND you will need to return the car. If you have already paid at least this amount plus any overdue payments and have taken reasonable care of the car, you will not have to pay any more. You will not receive any refund of any payments you have made up to or beyond that point.

This is known as Voluntary Termination (VT) and, if you do not fully repay what you owe under your agreement, this could be recorded with the credit reference agencies and may have an effect on your ability to borrow in the future.

Can HP or CS contracts be transferred?

You cannot transfer a HP or CS contract to anybody else. Your contract would be written specifically for you, taking your finances, credit rating and other factors into consideration. For this reason, it would not be applicable to someone else. If someone wants to buy your car before you become the legal owner, you'd have to settle your contract first.


Fleet Sales Leicester Limited is authorised and regulated by the Financial Conduct Authority, FRN: 654576. All finance is subject to status and income. Written quotation on request. We act as a credit broker not a lender. We work with a number of carefully selected credit providers who may be able to offer you finance for your purchase. We are only able to offer finance products from these providers. It is our intention to provide a high level of service at all times. However if you have reason to make a complaint about our service you should contact Fleet Sales Leicester Limited, Unit 4, Arkwright Industrial Estate, Lutterworth Road, Cosby LE91RH. If we are unable to resolve your complaint satisfactorily, you may be entitled to refer the matter to the Financial Ombudsman Service (FOS). Further information is available by calling the FOS on 0845 080 1800 or at http://www.financial-ombudsman.org.uk Whichever lender we introduce you to, we will typically receive commission from them. The lenders we work with could pay commission at different rates. However, the amount of commission we receive from a lender does not have an effect on the amount you pay to that lender under your credit agreement.