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Car Finance

About 30% of buyers will use some form of a funding solution to purchase their car and at Invictus Motors we have access to a number of lenders who have a huge choice of plans to suit your requirements. Hire Purchase, Personal Contract Purchase, Lease Purchase and Hire Purchase with Balloon are just some of the products we can offer along with Classic Car finance, we are sure that we can find an option perfectly tailored for you.

Here is a summary of some of the plans that are available:

Personal Contract Purchase

What is Personal Contract Purchase

Personal Contract Purchase, also known as PCP, is a popular way of financing a vehicle and is usually based upon a Hire Purchase (HP) agreement. The main difference is that the vehicle's value at the end of the agreement is calculated at the start and is then deferred. This is referred to as the Guaranteed Minimum Future Value (GMFV) and is based on various factors including the starting mileage, the user's projected annual mileage and the age of the car.
  • At the end of a PCP agreement the user has three options:
  • Pay the GMFV and keep the car
  • Trade the car in and use any equity towards their next car purchase
  • Hand the car back with nothing more to pay

Under a PCP agreement, monthly instalments are based on the amount borrowed minus the GMFV.

How does it work?

You pay an initial deposit - normally 10-30% - and then the balance in fixed monthly instalments over an agreed term (24-48 months). At the end of the contract, you can choose to hand the car back with nothing more to pay, part exchange it and use any equity (the difference between the trade-in value and the GMFV) towards the purchase of your next car, or simply pay off the GMFV and keep the car.

What are the benefits of Personal Contract Purchase?

  • Flexible deposit options at the start
  • Lower monthly payments than Hire Purchase
  • Fixed monthly payments throughout the term of the agreement
  • Three options at the end of your agreement
  • Easy to budget for your next car purchase

Why choose PCP?


PCPs are great if you want to change your car on a regular cycle and enjoy fixed monthly payments that are lower than a traditional Hire Purchase.
Hire Purchase with a balloon

What is Hire Purchase with a balloon?

Hire Purchase with a balloon payment is very similar to a standard Hire Purchase agreement, but like a PCP a certain amount of the loan is deferred until the end as a final "balloon" payment to reduce the monthly payments. For cars with strong residual values, the final balloon can be more flexible than a PCP, which can further reduce monthly payments. The balloon amount is agreed in advance and fixed, but unlike a PCP there is no Guaranteed Minimum Future Value and the final payment has to be settled at the end of the agreement if you want to take ownership of the vehicle. The alternatives are part exchanging or refinancing the vehicle.

How does it work?

You make an initial deposit - normally 10-30% - and pay for the vehicle monthly until the end of the agreement, when you will need to pay the balloon payment to take ownership of the vehicle, refinance the outstanding balance or trade the car in.

What are the benefits of Hire Purchase + Balloon?

  • Lower monthly payments than equivalent HP
  • More flexible final payment than a PCP
  • A simple way to finance a vehicle purchase
  • Flexible deposit options at the start
  • A choice of agreement length based on your own financial circumstances
  • Fixed monthly repayments

Why choose Hire Purchase + Balloon


HP Balloon agreements are ideal for those purchasing collectable or classic cars with strong residual values such as limited production Porsche and Ferrari models. Unlike a PCP, there is no age limit on the vehicle at the end of the agreement.
Hire Purchase

What is Hire Purchase?

A Hire Purchase agreement allows you to pay for your vehicle monthly over a fixed period (usually 2-5 years). The interest rate and monthly payments are fixed at the start of the agreement and the car becomes yours when you have made the final monthly payment. In effect, the vehicle is hired until you make your final monthly payment, after which you own it. Sometimes also referred to as a Lease Purchase, Hire Purchase agreements are also available with the option of a final balloon payment which further reduces the monthly payments

How does it work?

You make an initial deposit - normally 10-40% - and pay for the vehicle monthly until the end of the agreement, when you take ownership. The finance is secured on the vehicle - a bit like a mortgage.

What are the benefits of Hire Purchase?

  • A simple way to finance a vehicle purchase
  • Flexible deposit options at the start
  • A choice of agreement length based on your own financial circumstances
  • Fixed monthly repayments

Why choose Hire Purchase?


Hire Purchase is ideal if you intend to keep the car at the end of the agreement.


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FINANCIAL DISCLOSURE
Invictus Motors is registered in England and Wales under company number: 10832035. Invictus Motors is authorised and regulated by the Financial Conduct Authority, under FCA number: 833579. We act as a credit broker not a lender. We work with several carefully selected credit providers who may be able to offer you finance for your purchase. (Written Quotation available upon request). Whichever lender we introduce you to, we will typically receive commission from them (either a fixed fee or a fixed percentage of the amount you borrow). The lenders we work with could pay commission at different rates. All finance is subject to status and income. Terms and conditions apply. Applicants must be 18 year or over. We are only able to offer finance products from these providers.

Why Finance Through A Dealership?

What is Hire Purchase?

What is Personal Contract Purchase?

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Invictus Motors
The Old Barn Store
Mill Lane
Hatfield Heath
Bishop Stortford
Hertfordshire
CM22 7AA
01279 94017607791 261078
enquiries@invictusmotors.co.uk

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FCA No. 833579

Invictus Motors is authorised and regulated by the Financial Conduct Authority, FRN: 833579. All finance is subject to status and income. Written Quotation on request. We act as a credit broker not a lender. We work with a number of carefully selected credit providers who may be able to offer you finance for your purchase. We are only able to offer finance products from these providers.

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