There are various ways that customers choose to pay for a new car. Some save, some part-exchange their old car, and others choose from the range of car finance options available such as leasing, loans and Personal Contract Purchase (PCP).
Choosing the right finance product is an important decision, and what is right for you may not suit someone else. Factors to consider include your monthly budget, how much deposit you have and how long you’re planning to have the car for. Everyone’s circumstances are different, which is why we offer multiple types of car finance for your new MG vehicle.
People choose to pay for cars monthly rather than in one go for a number of reasons. Convenience and time are usually top of the list. Saving the full amount of money needed to buy a new car could take years, whereas putting a small deposit down and paying the cost off monthly means you can have the car sooner. With many finance products not requiring a deposit, people can be on the road within a few weeks.
Similarly, finance options are often the more affordable option. While the interest on re-payments mean that customers ultimately pay a little more, many people find monthly payments easier to manage than the lump sum of buying a new car outright.
Finally, another reason people choose car finance options such as PCP is that they like to regularly swap their car. PCP offers an optional payment at the end to own the car, or customers can give it back and take out finance on a new car. This is ideal for people who don’t want to deal with the maintenance costs that older cars typically incur.
You’ve got two flexible finance options available at MG: Personal Contract Purchase and Purchase Plan.
With PCP car financing, you pay monthly instalments on a new car and then have an optional final payment at the end of the period to buy the car outright. If you decide not to pay this final amount, you can either hand the car back to MG without paying anything else (as long as there is no damage and the mileage limit has not been exceeded), or you can part-exchange it for a new vehicle.
The benefits of PCP include:
A purchase plan is a similar type of car finance to PCP, but with some key differences. With a purchase plan, you first choose whether to finance the total cost of the car, or to put down a deposit and finance the remaining amount. You then choose how many months you would like to spread your payments over, which typically range between 24 and 60 months (or 2-5 years). As with PCP, all payments are at a fixed interest rate.
Some of the reasons people may choose a Purchase Plan are:
The question of ‘can I get car finance?’ often comes up when people are looking into payment options. Car finance is like any other loan or credit in that the company will run a credit check to ensure you are a suitable candidate for the product.
Assuming that you pass this check, choosing between finance products largely depends upon your own circumstances and preferences. Key things to ask yourself when deciding which option to go for include: