Finance Explained

At Donnelly Vauxhall, we know that buying a vehicle is a huge decision. So we have put together a Donnelly Vauxhall Buyers Guide, to help you to make the best decision for you!!

Financing a new Vehicle

With Vauxhall, there are three main ways to finance a new car.

Conditional Sale - you will own the car at the end of your term

Personal Contract Hire (PCH) - return the car at the end of your term

Personal Contract Purchase (PCP) - keeps your options open.

Donnelly Vauxhall’s full range of finance offers can be found from here

What is Conditional Sale? 

Conditional Sale, often referred to as Hire Purchase, is one of the most common ways to finance a new or used vehicle, and is probably the most straight-forward and easy to understand method of vehicle financing.

Conditional Sale assumes that you want to eventually own the vehicle at the end of your finance term, so simply splits the total cost of the vehicle (minus your deposit) over the duration of your plan. Vauxhall offers a 0% Conditional Sale agreement*, which means you only pay for the cost of the vehicle and nothing more.

Once the last monthly payment has been made, the vehicle is yours​

What is PCP?

With Personal Contract Purchase (PCP), you can keep your options open. You choose your deposit and term length, and have three choices at the end of your term.

The key difference between PCP and a standard Conditional Sale agreement is that rather than paying the sum of the entire vehicle over the duration of your agreement and owning it at the end, you have the option to give back your vehicle at the end of your term, or even replace it for a different vehicle on a new finance plan.

The Retailer will calculate an Optional Final Payment before your contract begins, which is a guaranteed figure and therefore remains fixed throughout your term. This Optional Final Payment is a forecast of the vehicle’s worth at the end of your finance term, which takes into consideration factors like the age of the vehicle at the end of the term, and the estimated mileage that the vehicle would have done when it’s handed back.

When calculating your monthly payments, the Optional Final Payment is then deducted from the cost of the vehicle, which means that your monthly payments in a PCP agreement are always likely to be cheaper than in a Conditional Sale agreement.

At the end of a PCP finance term, you have three options with Vauxhall.

  • Go for a change. Part exchange your vehicle (where equity is available) for a different Vauxhall on a new plan
  • Keep it. Pay the optional final payment to own your vehicle
  • Hand it back. If you dont want to keep your vehicle, you're free to return it at the end.

What is PCH?

Personal Contract Hire is a simple lease agreement that gives you the ability to regularly change cars and avoid the decreases in value that owning a car outright normally results in.

Similar to a standard home rental contract, there is no option to buy the vehicle at the end of your term. You simply hand it back to the rental company and are then free to enter another agreement. Do watch out for any damage made to the vehicle during your contract, as you may be charged for this by the rental company when you return the vehicle.

When entering a lease agreement, you will asked to choose your desired term length and anticipated annual mileage. A combination of these factors will determine the cost of the monthly payments.

A benefit of Personal Contract Hire is that your Road Fund License will be paid for throughout the duration of your lease, and all Personal Contract Hire plans at Vauxhall come with RAC Roadside Assistance provided for the first year of your lease, with the option also of adding regular vehicle maintenance to your contract.

Contact a member of our team today.

Donnelly Vauxhall Dungannon: 028 8744 0407

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