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Car financing helps to make outright ownership more achievable for anyone who can’t afford to pay the full asking price – which is most of us. Indeed, in the UK, more than 90% of consumers secure their cars via financing – and here at Flear & Thomson in Perth, Dunfermline and Stirling, we provide flexible ways for you to do so.
With Flear & Thomson financing, it’s easier than ever to own the vehicle you most want. We not only provide access to the latest Kia models, we have more than 150 high-quality used vehicles for you to choose from.
Let’s look at our financing solutions…
One of the most popular car financing solutions, PCP is also one of the most flexible, not least because it provides the option to own the car, hand it back or start a new PCP agreement.
A PCP agreement requires the payment of a deposit, followed by affordable fixed monthly payments. Just before the contract comes to an end, you’ll have the option to pay a final ‘balloon’ instalment. If you choose to do so, the car will be yours to keep.
The balloon instalment is more formally known as guaranteed minimum future value (GMFV). It’s a figure calculated at the start of the agreement which represents the estimated value of the vehicle at the end of the agreement.
With PCP, monthly instalments tend to be lower than with other credit agreements. This is because the sum of each monthly payment represents the difference between the total price of the car and the final GMFV instalment.
Via a deposit and fixed monthly payments, it allows you to budget for a car that you might otherwise be unable to afford. The last, larger instalment pays off the vehicle’s guaranteed minimum future value (GMFV), which is calculated at the start of the agreement. Once you’ve made this payment, the car is yours. Alternatively, you can decide not to pay the final instalment, hand the car back and walk away with no more to pay. Or, you can choose to begin a new PCP contract, which will allow you to select a brand-new car.
If you’re not sure whether you want to end up owning the car outright, it gives you the option to decline the final payment. If you do this, it means you’ll have leased the vehicle, effectively. Or you might wish to start a new PCP agreement which means getting to choose a new model.
1.Make the payment, keep the car
2.Decline the payment, hand the car back and walk away with nothing more to pay
3.Begin a new PCP agreement and choose an upgraded model
You’ll need to:
Yes, provided you have paid off at least 50% of the total finance amount. If you haven’t, you’ll need to pay the difference.
CS is a popular form of financing, particularly with motorists who wish to achieve outright ownership. It’s also valued for its simplicity because monthly payments are determined by the difference between the overall cost and the deposit paid.
With CS, there’s no final, larger payment to be made (as with PCP). This is because you pay off the value of the car, plus interest and any fees.
Yes, if you’ve paid off 50% or more of the finance agreement, including interest and fees.
If you’re looking for a flexible way to finance your next car, Personal Contract Purchase (PCP) could be the perfect choice. PCP car finance is designed to make driving a new or nearly-new car more affordable, with lower monthly payments compared to traditional loans. It’s a popular option for drivers who like upgrading their car regularly and want the freedom to decide what to do at the end of the agreement.
Personal Contract Purchase (PCP) is one of the most popular car finance options, giving you low monthly payments and flexibility at the end of your agreement. With PCP car finance, you can choose to keep the car, trade it in for a new model, or simply return it – making it a convenient way to drive the car you want without long-term commitment.”
One of the biggest advantages of PCP car finance is that it makes monthly payments more affordable compared to traditional car loans, allowing you to drive a newer model without stretching your budget. PCP also gives you flexibility at the end of your agreement — you can choose to keep the car, upgrade to a newer model, or simply hand it back if you prefer. This makes it an attractive option for drivers who like changing their car regularly. Another benefit is that PCP agreements can be tailored to suit your needs, with adjustable deposits and mileage limits, giving you more control over your finance plan. For many drivers, the combination of lower payments, flexibility, and access to the latest cars makes PCP one of the most appealing car finance options available.
While PCP car finance offers flexibility and lower monthly payments, it’s important to think carefully before committing. You’ll need to agree to a mileage limit at the start of the contract, and going over this can lead to additional charges. The car must also be kept in good condition, as any damage beyond fair wear and tear may result in extra costs at the end of the agreement. It’s worth noting that unless you make the final balloon payment, you won’t actually own the car — so PCP may not be the best option if long-term ownership is your priority. Finally, your credit score will influence the deal you’re offered, so checking your eligibility beforehand can help you secure the best PCP car finance rates.
Yes, you can settle your PCP agreement early through a process called “voluntary termination” or by paying off the outstanding balance in full. If you choose to end your PCP car finance early, the finance company will calculate a settlement figure, which includes the remaining payments and sometimes the balloon payment. In some cases, you may be able to hand the car back once you’ve paid 50% of the total amount owed, including interest and fees. Settling your PCP early can be a good option if your circumstances change, but it’s important to check the terms of your agreement so you understand any charges or conditions that may apply.
Personal Contract Hire (PCH), often known as car leasing, is a simple and hassle-free way to drive a brand-new car without worrying about ownership. With PCH, you pay a fixed monthly rental fee for the length of your contract, and at the end, you simply return the car. It’s a popular choice for drivers who want lower running costs, predictable monthly payments, and the flexibility to change their car every few years without the responsibility of resale or depreciation.
With Personal Contract Hire (PCH), you choose the car you want to lease, decide on your contract length, mileage allowance, and initial payment, then pay fixed monthly rentals for the duration of the agreement. At the end of the term, you simply hand the car back to the leasing company with no balloon payment or ownership option. Because you never own the vehicle, you don’t have to worry about its resale value or depreciation, making PCH a straightforward and stress-free way to drive a new car. Many PCH agreements also include optional maintenance packages, helping you keep running costs predictable and affordable.
One of the main advantages of Personal Contract Hire is its simplicity — you make fixed monthly payments and hand the car back at the end, with no need to worry about depreciation or selling it on. PCH often comes with lower monthly costs compared to other finance options, making it easier to budget. Drivers also enjoy the benefit of always having access to a new or nearly-new car, with the option to include maintenance packages that keep running costs predictable. For those who like upgrading every few years without the responsibility of ownership, PCH car leasing is a flexible and cost-effective solution.
While PCH car finance is a convenient way to drive a new car, there are a few important factors to consider. Since you never own the vehicle, you cannot sell it at the end of the contract, and there may be penalties if you exceed your agreed mileage or return the car with damage beyond fair wear and tear. PCH agreements are generally fixed-term, so ending the contract early can be expensive or may not be permitted. Additionally, while optional maintenance packages can simplify running costs, you’ll need to budget for insurance, fuel, and other expenses separately. Understanding these details upfront will help ensure PCH is the right choice for your driving needs.
Unlike PCP, Personal Contract Hire (PCH) agreements are typically fixed-term leases, and early termination can be more complicated. Most PCH contracts do not allow you to simply pay off the remaining balance to end the agreement early. If you need to return the car before the contract ends, the leasing company may charge an early termination fee, which can be significant. It’s important to carefully review your PCH agreement before signing, so you understand any penalties or conditions for ending the lease early. Planning ahead ensures you avoid unexpected costs and can fully enjoy the benefits of your PCH car finance.
A personal motor loan is a straightforward way to finance your next car, giving you the option to borrow a fixed amount and pay it back in affordable monthly instalments. Unlike PCP or PCH, a personal motor loan lets you own the car outright from day one, giving you full control over your vehicle. This type of car finance is ideal for drivers who want predictable payments, flexibility to choose their car, and the freedom to keep it for as long as they like.
With a personal motor loan, you borrow a set amount to buy the car you want, then repay it in fixed monthly installments over an agreed period. Interest rates and repayment terms are set at the start, giving you predictable monthly costs. Because you own the car from day one, you have full control over how long you keep it, whether you modify it, or if you decide to sell it in the future. Personal motor loans are often flexible, allowing you to make overpayments or settle the loan early, which can save on interest and give you greater financial control.
One of the main advantages of a personal motor loan is that you own the car outright from the start, giving you complete control over your vehicle. Monthly repayments are fixed and predictable, making it easier to manage your budget. Unlike PCP or PCH, there are no mileage restrictions or end-of-contract penalties, and you can modify or sell the car whenever you like. Personal motor loans also often allow overpayments or early settlement, giving you flexibility to reduce interest costs or clear the loan sooner. For drivers who want long-term ownership and full freedom with their car, a personal motor loan is a simple and transparent financing option.
While personal motor loans offer full ownership and predictable repayments, there are a few factors to keep in mind. The monthly payments can be higher than PCP or PCH options because you are paying off the full value of the car, not just its depreciation. Your credit score will also affect the interest rate and terms you are offered, so it’s important to check your eligibility beforehand. Additionally, because you own the car outright, you are responsible for all maintenance, servicing, and insurance costs. Understanding these aspects will help you decide if a personal motor loan is the best choice for your budget and long-term car ownership goals.
Yes, one of the benefits of a personal motor loan is that you can often settle it early. Paying off your loan before the agreed term can reduce the total interest you pay and give you full ownership of the car sooner. However, some lenders may apply early repayment fees or conditions, so it’s important to check the terms of your agreement before making an early settlement. Planning ahead and understanding your lender’s rules ensures you can take advantage of this flexibility without unexpected costs.
