- DriveAway GAP

Cash or Hire Purchase or PCP
RTI - Return to Invoice Gap
Policy word - Policy Summary

Outright Purchase

You can purchase a car, van, or motorcycle by paying from savings, this is often described as a Cash purchase. Once paid you retain full ownership of the vehicle.

HP (Hire Purchase)

You can spread the cost of your car, van, or motorcycle by paying in fixed monthly instalments to a finance company. With terms from 12 to 60 months and a deposit amount. An interest charge is calculated on the amount of money you loan. When you have paid off the finance agreement, and settled the option to purchase fee, the vehicle becomes yours.

PCP (Personal Contract Purchase)

Spread the cost of your vehicle by paying in fixed monthly instalments with terms from two, three to four years. This product contains a balloon payment at the end of the finance agreement, which usually makes the monthly instalment amounts lower than a traditional Hire Purchase (HP) agreement.

When you have paid off the finance agreement, and the Final balloon payment or Guaranteed Minimum Future Value (GMFV), the vehicle becomes yours.

Alternatively, you can return the vehicle to the dealership, use it as a part exchange against your next vehicle or refinance the balloon payment into a new HP agreement.

Contract Hire or PCH
Contract Hire Gap
Policy word - Policy Summary

Contract Hire (vehicle Leasing)

Contract Hire is a long-term rental agreement for businesses Offering the exclusive use of a car or van for a set period of time at a fixed monthly price Car is a fixed monthly payment + Vat for the term of the lease. The customer also doesn’t have to worry about depreciation or selling the car as the vehicle is simply handed back to the lease company. At the start of a contract, the customer pays an initial rental usually equivalent to three monthly payments. The customer then makes monthly payments for the duration of the contract term. At the end of the contract (typically two, three years or four years), the customer simply hands the car back without any further obligations.

PCH (Personal Contract Hire)

Personal contract Hire (Personal leasing) long-term rental agreement that allows you to use a car or van for a set period of time at a fixed monthly price. Although there are a number of different personal lease contract types, all personal lease prices include VAT. With PCH, you pay for the use of the vehicle throughout your contract, then return the car to the finance company at the end of the agreement without any further obligations or ownership.