When it comes to investing in a new car, car finance is an effective way to cover the cost of the vehicle without paying upfront. Simply put, car finance refers to a range of options that allow you to spread the cost of a new car over affordable monthly payments.

At Budgen Motors we have a range of Shrewsbury car finance options, to help make buying your new car as seamless as possible.

Car finance comes in various forms, each designed to cater to different needs and preferences. Here’s a brief overview of the most popular car finance options in Shrewsbury.

Personal Contract Hire (PCH)

Personal contract hire is essentially a long-term lease. You pay an initial deposit followed by fixed monthly payments to use the car. PCH typically lasts for 1 to 4 years, and at the end of the agreement, you simply return the vehicle.

This option is great for lower monthly payments, and if you don’t want the responsibility of owning the car at the end. PCH presents the opportunity to drive brand new cars for low costs, and upgrade every few years should you wish.

Personal Contract Purchase (PCP)

Personal contract purchase is similar to PCH where you make monthly payments, but some payments go towards owning the vehicle. You’ll only pay some of the car’s value during the term and have the option to buy it afterwards. At the end of PCP, you can make the final payment and keep the car, return it, or trade the vehicle for a new one.

The flexibility of PCP makes it a popular choice among many car buyers. Other advantages are the fixed monthly payments and Agreed Future Value up front.

Hire Purchase (HP)

Hire purchase involves paying fixed monthly instalments to spread the cost of the new vehicle. Once all payments are made, you own the car outright. HP is a common car finance option that considers the car’s value, your trade in or down payment, and the contract length.

It’s ideal if you want to eventually own the car and is simple to arrange. Overall, HP ensures a predictable payment schedule throughout the purchase of your new vehicle.

Business Contract Hire

Business contract hire is designed for businesses that need a new vehicle, but don’t want to purchase one. It allows companies to lease cars for a fixed period, with a single monthly payment to use them. When the agreement ends, the vehicle is returned and the business can get another contract for the same car or a newer model.

This option is beneficial because it provides businesses with predictable monthly payments, tax benefits, and a simple way to manage fleet costs.

Lease Purchase

Lease purchase is another popular car finance agreement that is part lease, part purchase. There’s a deposit to secure the vehicle, and a set monthly amount is paid over 3-5 years towards eventually owning the car. You can either spread the cost of the car and lease over the agreement, or just pay the lease and then pay the final purchase amount at the end of the contract.

This can be a good option if you want lower monthly payments but still aim to own the vehicle at the end.

Finding the right Shrewsbury car finance provider is crucial, especially if you’re new to the process. It’s important to find a reputable and experienced provider like Budgen Motors.

As a multi-award-winning dealership, we have been serving Shrewsbury and beyond for over 40 years, and stand out as the go-to choice for car finance in the area.

We stock a variety of new car makes and models to suit every requirement, from petrol, diesel, hybrid and electric cars.

Opting for a Shrewsbury car finance provider like Budgen Motors has several advantages. With our local market knowledge, we offer a personalised service and finance options tailored to you. We have a huge range of new cars and are manufacturer-approved dealers of new Citroën, Peugeot, Renault, Dacia and MG vehicles. You can trust Budgen Motors to find the best deals and car finance agreements in the area.

Choosing the right car finance option can make a significant difference in your car-buying journey. Whether you prefer the flexibility of PCP or the simplicity of HP, Budgen Motors has got you covered. There isn’t a ‘best’ option just what’s right for you, and we’re here to help.

Ready to find the perfect Shrewsbury car finance solution? Contact us today and explore our wide range of new vehicles and finance options. Our friendly and knowledgeable team is here to answer any questions, and provide you with reliable and flexible car finance in Shrewsbury.