Finance at B V Rees

Types of car finance

There are multiple ways to finance a car, from personal loans to outright cash purchase, but it’s important to understand the types of finance options so you know which route if best for you.

Cash purchase

As the name suggests, a cash purchase is where you pay for the car with your own cash assets, so the final price of the vehicle is likely to be important to you, based on the cash amount you have available at the time.

Cash purchases historically are one of the most popular ways to fund your new vehicle, but it’s a method becoming less popular as other options are now on the table.

Personal loan

A personal loan is where the car buyer will facilitate the loan outside of the car dealership, usually with their bank or building society. A personal loan is where you borrow a specific amount of money for an agreed payment term. You then make regular monthly payments to your bank until the full amount of paid back.

You will use these funds to purchase the car outright, similar to a cash purchase, but it’s an option that is less limiting to the amount you can afford, as you will usually borrow based on the purchase price.

Hire Purchase

A hire purchase finance agreement helps you budget by offering a fixed interest rate and monthly payments, so you know what you will pay each month.

If you have a specific monthly payment in mind to meet your affordability, you can adjust the deposit and length of agreement accordingly during your application. This type of finance option usually allows you to drive a newer car with better specification.

At the end of a hire purchase, you will own the vehicle outright so you can then use the car as collateral towards a new vehicle or keep it for a little longer if you wish.

Personal Contract Purchase

If you want lower monthly payments, a personal contract purchase might be the ideal finance option for you. With a PCP deal, you delay part of the payment until the end of the agreement, which keeps your monthly payments as low as possible.

The deposit, monthly payment and annual mileage can all be adjusted to meet your needs.

The final payment is usually known as a balloon payment and is calculated using industry data. The amount is often adjusted down so you have equity in the vehicle that you can put towards your next purchase.

You can then either pay the final amount and keep the vehicle or part exchange towards a different vehicle and continue with monthly payments.

Finance Application Terms and Conditions

By completing the application for vehicle finance above, you give us, B V Rees Limited, the authority to request your credit history from credit reference agencies ("CRAs" ) and that you agree to a full ("hard") credit search on your credit report.

This hard search includes information like your credit score, credit report and data related to them, such as credit providers, county court judgements ("CCJs") and reasons for changes to your score or report. Hard searches are visible to third parties.

When you submit the application, a hard credit search will be performed and your eligibility for vehicle finance will be considered by our carefully selected panel of lenders. Each has their own acceptance criteria and will consider affordability elements that a credit search may not. Lenders will assess your ability to repay the finance provided, now and in the future, including in the event of a change in circumstances or the general market, such as an interest rate change.

Before proceeding, please note that multiple hard credit searches in close proximity to each other can detrimentally impact your credit score.