August 22, 2021 at 9:43 AM

Looking for a Vehicle and Struggling with your Finances?

The debate over whether to use savings or take out car finance to buy your used car has always been a lively debate.  On one hand using your savings means the car is yours, fully paid for with no monthly payments, however, using your hard earned savings may not be the best option.

Using your savings could leave you vulnerable if, in the future other things need paying for that may not be as easily available on finance as a used car loan currently is.

Used car finance will leave your savings intact providing flexibility and peace of mind.  You will be spreading the cost of your replacement car over a period of time, either with Hire Purchase (HP), a Personal Loan or Personal Contract Purchase (PCP).  So which type of car finance could be right for you?

With Hire Purchase (HP) you enter into a contract with the lender to make regular monthly payments until you pay the entire loan off.  You then own the vehicle. HP splits the cost of the car across a deposit (which could include a part exchange) and a series of equal monthly instalments (although no deposit options are also available).  If you are trading in your old car and have outstanding finance on it, Motor City Plymouth can settle that for you as part the new finance application.

With a Personal Loan (PL) you can apply over the phone, using Motor City’s 2minute on line application ( or come and see us at the dealership.

If you have a good credit rating you will have access to the best rates provided by our preferred partners.  Even with bad credit you will be offered competitive rates from our associated lenders who deal with complex applications.  Whatever interest rate is agreed at the start of the agreement, this will be fixed throughout the loan period so no nasty surprises with increased payments. Unlike with some other forms of used car finance, you own the car while paying off the loan, so if you get into financial difficulties, you could sell the car.

With a Personal Contract Purchase (PCP) you make regular monthly payments.  These payments are based on how much the finance company predicts the car will lose in value over the term.  There will be a balloon payment at the end of the term which will need to be paid if you want to keep the car.  You do not have to keep the car, you could hand the vehicle back and choose another vehicle and take out a new agreement. With these agreements there will be over mileage charges and damage charges if the vehicle is showing any signs of damage.

Please speak to our sales team at Motor City Plymouth ( and they will explain in more detail the options available to suit your individual circumstances.

You may be wondering if having a poor credit rating will stop you getting car finance, but don’t.  At Motor City Plymouth we work tirelessly with lenders who offer more choice and flexibility with their car finance deals.  Even if you have been refused in the past, you shouldn’t be deterred from applying.

With every type of finance we offer you will have the option to pay off any outstanding balance (penalty charges may aply to certain PL’s) and to trade in your part exchange against your new car.  All this can often be achieved with no deposit and a deferred first monthly repayment.

For more information about finance packages to suit you or to find out more about our used car stock and after sales offers please contact us on 01752 344414, email on or message us on Facebook ( Furthermore, you can easily and quickly apply on line by clicking on this link on our website. (

Visit Motor City Plymouth ( we have a dedicated team to help you with your finances.


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