Pay Monthly Used Cars - How Does Vehicle Finance Work?

Added: 24 April 2020

For a lot of people, buying a car outright does not suit their needs. Most buyers will instead opt to finance their vehicle, meaning that they initially borrow the money needed to pay for the car, and then pay off the loan.

At Bridgend Motor Group, Scotland’s largest independent used car retailer with showrooms located in Ayr, Irvine, Kilmarnock & Kilwinning in Ayrshire, we have a range of different finance options. Below, we’ll look at the differences between the options so that it’s easier for you to see which might best suit your needs.


This is a hire purchase arrangement, which means that the value of the loan is secured by the vehicle itself. As such, you do not technically own the vehicle until you have completed all the payments on the car and if you default on the loan, the car must be returned. This comes with some caveats, such as the fact you cannot sell the car without permission from the lender first.

This is traditionally the most popular way of funding a car purchase, in part due to the fact you can choose your own loan terms, and decide on the initial deposit in a way that suits your budget. It’s also one of the easier loans to plan around, due to the fact that your interest rates are fixed for the duration of the agreement. You can also settle the agreement by paying the remainder at any point and get an interest rebate.


PCP stands for personal contract purchase, which is better suited for those who tend to change their car frequently amongst others. As with a hire purchase agreement, you pay a deposit and then follow up with monthly instalments over a fixed period, with flexible terms based on your credit score.

However, at the end of a PCP agreement, you will not own the car outright but have the option to buy it by paying the remained of the value with a lump sum, to return it, or to sell it for the remainder of the value privately. The overall costs of driving a car on a PCP tends to be lower than a hire purchase agreement if you opt not to purchase it at the end, but you have to stick to some caveats like an agreed mileage limit and maintenance plan.

We make it easier to get the car finance you need

At Bridgend Motor Group, we want to make it easier for all of our customers to buy the used car they want, with a finance plan they understand. As such, we have a monthly payment search that allows you to get an estimation of how much you can expect to pay on the car you’re interested in buying. Furthermore, we can help those who do not have enough credit history or have a poor credit score.

Take a look at our car finance page on the website or get in touch with the specialists at any of our branches and we will be glad to help you get a better idea of what it would take to buy a used car from Bridgend Motor Group.