Finance Options at Flear & Thomson

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…

Personal Contract Purchase (PCP)

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.

How does PCP actually work?​


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.

What are the advantages of PCP?


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.

  • Lower monthly repayments – compared to Conditional Sale, for example.
  • Depreciation protection – should the car’s value drop quicker than anticipated, you have the option to hand it back at the end of the agreement.
  • Before paying the final balloon instalment, you have the option to:

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

What should you consider when option for a PCP?


You’ll need to:

  • Service the car according to manufacturer recommendations
  • Keep the car in good condition
  • Stay within specified mileage limits

Can I settle my PCP agreement early?


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.

Conditional Sale (CS)

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.

What are the advantages of CS?

  • It’s a good option if you fully intend to own the car outright at the end of the agreement.
  • There is no larger, final payment, as with PCP.
  • You don’t need to worry about mileage caps.
  • It’s available on both new and used vehicles.

What should you consider when opting for CS?

  • Compared to PCP, initial deposits and monthly payments with CS tend to be higher. That said, it’s always worth weighing up both options.
  • PCP is a better option if you wish to change your car every few years.
  • Interest payments may be higher because instalments tend to be spread out over a longer period of time.

Can I settle my CS agreement early?


Yes, if you’ve paid off 50% or more of the finance agreement, including interest and fees.