HP is the simplest and best-known form of motor finance.
Entering into an agreement with Startline, you pay a deposit and then make fixed, monthly payments over a period of time, usually between 12-60 months.
You are the registered keeper of the car and responsible for insuring and maintaining it, but we remain the legal owner until the amount you borrowed has been fully repaid.
At any point during the agreement customers can ask for a settlement figure, allowing you to pay a lump sum that clears the balance to take ownership of the car.
PCP is a variation of Hire Purchase. The main difference is that Startline estimates a fixed value for the car at the end of the agreement, called the Guaranteed Minimum Future Value (GMFV).
The GMFV is the key to PCP, and is based on a number of factors, such as the car’s age and agreed mileage.
Deferring the GMFV to the end of the agreement means that both the upfront deposit you pay and your fixed monthly payments will tend to be lower than those on a comparable HP agreement over the same period.
At the end of the agreement, you have a choice whether to pay off the GMFV to take ownership of the car, or return it to Startline in good condition.