Car Finance Options
At Ray Chapman Motors, we know that choosing the right finance package is just as important as choosing the right vehicle. That’s why we offer a comprehensive range of flexible finance options designed to make driving your next new or used car simple, transparent, and tailored to your needs.
Whether you prefer to change your car every few years or want a straightforward path to full ownership, our finance specialists are here to guide you through every step — ensuring complete confidence from the moment you enquire.
Finance Options Explained in Detail:
Personal Contract Purchase (PCP) is a finance product that allows you the opportunity to buy a new or a used car.
If you like to change your car every 2-3 years, then a Personal Contract Purchase plan, could be the perfect solution for you. By deferring part of the cost to the end it means you can reduce the length of your agreement, and at the end you have the flexibility to keep, exchange or return your vehicle.
What makes PCP different to Conditional Sale (CS) is that your monthly instalments are paying off the depreciation of the car, and not its entire value, over the course of the term. Then, when you get to the end of your agreement, there is a final, balloon payment that must be made if you want to keep the car. The balloon payment is often referred to also as the Guaranteed Future Value (GFV) or Optional Final Payment. Alternatively you can you return the car or renew.
HOW DOES IT WORK?
•You will agree an estimated annual mileage and term. This will be in order to generate the Optional Final Payment.
•You agree on the amount of deposit, and this figure combined with the agreement duration and Optional Final Payment will determine the amount of your monthly payment.
•You sign the agreement, pay the deposit and then make the monthly payments.
•At the end of the agreement we’ll write to remind you of the three available options:
Buy the car by paying the final balloon payment (the Guaranteed Future Value)
Hand the car back - your finance company has already predicted the Guaranteed Future Value of the car, so handing the car back will settle the deal. The mileage allowance will have been agreed at the beginning of your contract and there may be excess mileage charges if you exceed this.
Part exchange for a new car.
FEATURES AND BENEFITS
A fixed monthly payment, allowing you to budget with confidence
Potentially lower monthly payments than a Hire Purchase agreement
Variety of options available at end of the agreement
You can match the length of your agreement with the time you want to keep the vehicle
THINGS TO CONSIDER
If you want to buy the car you will need to pay your final balloon payment (the Guaranteed Future Value).
Similar to PCH, you will need to agree on a mileage allowance at the beginning of your contract and there may be excess mileage charges if you exceed this.
You won’t be able to sell the car without settling the finance.
You won’t own the car until you have made all of your repayments.
You’ll need to keep the car properly insured, maintained and in your possession until the full value is paid off.
Hire Purchase allows you to purchase a car by spreading the cost into manageable instalments that fit your budget. It offers a fixed interest rate, giving you the confidence to plan your future payments without any surprises. You can choose the duration over which you want to repay the loan, and once all payments are completed, the car is yours.
HOW DOES IT WORK?
The agreement can be structured to meet your individual requirements based on the car, the agreement duration required, the available deposit and your monthly budget.
After paying the initial deposit you make regular monthly payments to cover the amount borrowed plus any interest and fees. The interest rate is fixed which means you’ll know exactly how much you will repay throughout the term of the agreement. Once all of the payments have been paid the car is yours.
FEATURES & BENEFITS
Buy your car by repaying the amount payable in instalments that suit your circumstances.
The certainty of a fixed interest rate means you can confidently budget for future payments.
You decide how long you want to spread the payment of the balance over. The car is yours once all payments are made.
THINGS TO CONSIDER
As with any financial agreement, it’s critical that you’re sure you can make the repayments before you commit to a loan.
The lender may require you to repay the loan if you sell the car or it is written off.
Monthly payments may be higher than some other finance options, such as PCP, as you're paying off the full value of the car.
In support of the finance options, we also offer Guaranteed Asset Protection (GAP) Insurance. This is designed to cover those unfortunate experiences such as theft or an accident resulting in the car being written off. GAP insurance ensures the value you get back from your insurer is the original invoice value, not the valuation of the vehicle at the time of the claim.
Depending on the age of the vehicle when the claim was made there could be a gap between how much the insurer is prepared to pay and how much is left on the finance agreement. In this situation, the agreement holder would be liable to fund the difference. GAP insurance provides cover to ensure any difference is protected.
PCH is a simple and cost-effective way to enjoy driving a brand-new car without the long-term commitment of ownership. If you like to change your car every 2–3 years and prefer fixed, predictable monthly costs, PCH could be the perfect solution.
With Personal Contract Hire, you simply choose your car, agree your contract terms, and enjoy the vehical for the duration of your lease. At the end, you return the car with no balloon payment or resale worries — making it one of the easiest and most convenient ways to drive a new car.
HOW DOES IT WORK?
• Choose your car and agree your annual mileage and contract length (usually 24–48 months).
• Decide your initial rental amount — this, combined with your term and mileage, determines your monthly rental.
• Sign your agreement, pay your initial rental, and enjoy fixed monthly payments throughout your contract.
• At the end of the agreement, simply hand the car back — subject to mileage and fair wear and tear — and, if you like, choose a brand-new car again.
FEATURES AND BENEFITS
Fixed monthly rentals for easy budgeting
Often lower monthly payments than traditional ownership-focused finance products
No need to worry about depreciation or resale value
A brand-new Volvo every few years with no long-term commitment
Perfect for drivers who prefer simplicity and flexibility
THINGS TO CONSIDER
You will not own the vehicle — it is leased and must be returned at the end of the term.
You must agree a mileage allowance; excess mileage charges will apply if you exceed it.
The car must be kept insured, maintained, and in good condition throughout the contract.
Early termination fees may apply if you choose to end the contract early.
At Ray Chapman Motors our expert team is here to make the finance process simple, transparent, and tailored entirely to you. Whether you’ve already found the car that suits your lifestyle or you’re still comparing options, we can provide clear guidance, personalised finance quotes, and a full breakdown of what each plan means for your monthly budget and long-term goals.
Our finance specialists work closely with recognised Financial Services to offer highly competitive rates across PCP, HP, and PCH agreements. We take the time to understand your driving habits, ownership preferences, and annual mileage, ensuring you choose a plan that supports both your needs today and your plans for the future.
You can begin your finance journey online, over the phone, or by visiting one of our dealerships in Bradford, Huddersfield, Malton, or York. No matter how you prefer to start the process, you can expect the same professional guidance, exceptional customer service, and a commitment to finding the right solution for you.
Request a personalised finance quote today or speak with one of our specialists to discover how affordable your next car could be.