Mazda Finance Options at Brayleys Cars

What is Personal Contract Purchase (PCP)?

Personal Contract Purchase (PCP) is a popular finance product that enables you to buy or lease a new or used Mazda vehicle by paying for it over an agreed period of time. When you’ve chosen your car, you’ll pay an initial deposit followed by monthly instalments over a pre-agreed term – usually between 18-48 months.

With PCP, you aren’t paying for the full value of the vehicle. Instead, you’ll pay off the depreciation value, that is, the full value of the car now minus its Guaranteed Minimum Future Value (GMFV) at the end of your agreement. This means monthly payments are typically cheaper than with other schemes such as Hire Purchase.

At the end of the contract, you have three options: you can hand the vehicle back with no further commitments, part-exchange it for another vehicle of your choice, or make a balloon payment to take full ownership of the car.Personal Contract Purchase (PCP) is a popular finance product that enables you to buy or lease a new or used Mazda vehicle by paying for it over an agreed period of time. When you’ve chosen your car, you’ll pay an initial deposit followed by monthly instalments over a pre-agreed term – usually between 18-48 months.

With PCP, you aren’t paying for the full value of the vehicle. Instead, you’ll pay off the depreciation value, that is, the full value of the car now minus its Guaranteed Minimum Future Value (GMFV) at the end of your agreement. This means monthly payments are typically cheaper than with other schemes such as Hire Purchase.

At the end of the contract, you have three options: you can hand the vehicle back with no further commitments, part-exchange it for another vehicle of your choice, or make a balloon payment to take full ownership of the car. 

How does PCP actually work?

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Personal Contract Purchase (PCP) is a popular finance product that enables you to buy or lease a new or used Mazda vehicle by paying for it over an agreed period of time. When you’ve chosen your car, you’ll pay an initial deposit followed by monthly instalments over a pre-agreed term – usually between 18-48 months.

With PCP, you aren’t paying for the full value of the vehicle. Instead, you’ll pay off the depreciation value, that is, the full value of the car now minus its Guaranteed Minimum Future Value (GMFV) at the end of your agreement. This means monthly payments are typically cheaper than with other schemes such as Hire Purchase.

At the end of the contract, you have three options: you can hand the vehicle back with no further commitments, part-exchange it for another vehicle of your choice, or make a balloon payment to take full ownership of the car. 

What are the advantages of PCP?

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  • Monthly instalments are typically lower than with Hire Purchase agreements, since you’re not paying the full value of the car.
  • It’s a flexible option, allowing you to decide near the end of the agreement whether you’d like to keep the car.
  • It’s ideal if you want to upgrade your vehicle every few years.
  • If your car is worth more than the GMFV at the end of the contract, you can use the equity towards a deposit on your next vehicle.

What should you consider when opting for PCP?

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  • In order to buy the car, you must pay the final balloon payment.
  • You will have an annual mileage limit which, if exceeded, will incur extra charges at the end of the agreement.
  • You won’t own the car while making the repayments, and must settle any outstanding finance before selling the car.
  • You’ll need to keep the car properly insured, taxed and maintained while it’s in your possession.

Can I settle my PCP agreement early?

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Yes, this is usually possible by asking your finance provider to supply a settlement figure. This figure will include any unpaid instalments and any remaining interest. However, it’s worth considering that the finance company may require you to pay off the difference between what the vehicle is worth and what you still owe, which could result in negative equity. Speak to one of our advisors today for assistance.

What is Hire Purchase (HP)?

Hire Purchase (HP) is a great way to fund the purchase of a new or used Mazda car if your aim is to be its owner at the end of the agreement. When you’ve chosen your car, you’ll pay a deposit followed by monthly instalments that cover its full value. At the end of the contract, you’ll make a final payment called an Option to Purchase fee, and take ownership.

What are the advantages of HP?

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  • It’s an affordable way to purchase a vehicle that you want to own without having to buy outright.
  • There’s no mileage limit over the course of the contract, so you won’t incur excess mileage charges.
  • You own the vehicle outright at the end of the agreement.

What should you consider when opting for HP?

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  • Monthly payments may be higher than with options such as PCP, because you’re paying off the full value of the car.
  • You won’t own the car until you’ve made all your repayments, and you must settle the finance before selling it.
  • You’ll need to keep the car properly insured, taxed and maintained throughout the agreement.

Can I settle my HP agreement early?

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Yes – in fact, if you’ve paid off two thirds of your repayments, the options to end the finance agreement early open up. You can pay off the balance with a settlement fee, which covers the unpaid instalments and any remaining interest. Once this is paid, you’re the full owner of the vehicle.
What is Personal Contract Purchase (PCP)?
Personal Contract Purchase (PCP) is a finance product that allows you the opportunity to buy a new or a used car. It is similar to a Hire Purchase agreement as you will usually pay an initial deposit, followed by monthly instalments over a term typically between 18 to 48 months.What makes PCP different to Hire Purchase (HP) is that your monthly instalments are paying off the depreciation of the car, and not its entire value, over the course of the term.

How does PCP actually work?​

What are the advantages of PCP?

What should you consider when option for a PCP?

Can I settle my PCP agreement early?

What is Hire Purchase (HP)?
​Hire Purchase is a way to finance buying a new or used car. You will normally pay an initial deposit and will pay off the entire value of the car in monthly instalments. When all the payments are made, the Hire Purchase agreement ends, and you own the car outright. ​

How does HP actually work?​

What are the advantages of HP?

What should you consider when option for a HP?

Can I settle my HP agreement early?