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Finance InformationBack

At First Step Motoring our mission is to provide you with the keenest car finance and car insurance deals on the market.

As well as being able to offer you an outright cash purchase, we also offer three car finance products:-

Personal Contract Purchase (PCP)

With a PCP, you pay a deposit, then make monthly repayments for 2, 3 or 4 years. At the end of the agreement you can either:

  • Hand the car back to the finance company,
  • Part-exchange it for another, or
  • Pay the remaining lump sum and the vehicle becomes yours

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A PCP is a great way to buy a car if you change your car for a new one every 2 or 3 years. It also has the added benefit that the future value is guaranteed by the finance company so if your car is worth less than the final payment you can hand the car back without penalty.

When taking out a PCP deal you declare your annual mileage which is then used to calculate the final payment at the end of the contract period.  If you do more miles than stated in the contract there will be an excess mileage charge applied. 

There are also stipulations in the agreement regarding the vehicle's service history and general condition so that the value of the vehicle is not affected should you wish to hand it back.

How PCP Works

Benefits to you:

  • You can change your car more reguarly.
  • You can afford a better car for a lower fixed monthly payment over a shorter term.
  • Guaranteed future value eliminates risk of negative money equity and protects against deprecation.
  • Flexible options at the end of the agreement to fit in with your personal circumstances
  • You have the additional option to settle the agreement early and you will be given a rebate on interest charges.

Hire Purchase (HP)

Hire Purchase is a simple and traditional way to fund your new vehicle. It involves fixed monthly payments over a period of time between 12 and 60 months. Once all payments have been made the vehicle is yours.

How HP Works
  • Leaves other credit requirements undisturbed as the loan is secured on the vehicle, leaving your bank free for future emergencies and opportunities.
  • Fixed interest rates and monthly payments.
  • Low and zero deposit deals available.
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When considering your loan options it’s worth remembering that your bank and other direct lenders are not as tightly regulated as Car Loan Lenders. This gives you many advantages – for example, you will benefit from a reduction on interest in the event of you wanting to settle early on a Car Loan. This is very rare on a personal loan.

Low Payment Plan (LPP)

If you're looking for the lowest monthly payment possible then a Low Payment Plan could be the answer. A LPP is similar to a PCP apart from at the end of the contract you have to pay the final lump sum and the vehicle becomes yours.

Alternatively, you can part-exchange your car for a newer one. There is no option to hand the vehicle back to the finance company. 

Finance subject to status, written details on request. Credit is available to persons over the age of 18 and applicants must be resident in the UK (not including the Isle of Man or Channel Islands). Guarantees and/or indemnities may be required. Customers who do not satisfy our normal credit criteria may be offered finance at a different APR.