Finance Options
Hire Purchase
Hire Purchase (HP) is very similar to borrowing a sum of money from a bank and paying it back over a fixed period of time, with interest. Hire Purchase is a type of secured loan which are often preferred over alternative (unsecured) loans because they allow a greater borrowing limit. The term "secured loan" means exactly that, a loan that the lender can secure against an asset (in this case, the vehicle). HP gives you additional rights over those of a personal loan and is only available through dealers that have passed the stringent approval process of the finance companies.
Lease Purchase
Lease
Purchase will enable you to purchase your next car with lower monthly
repayments. The way this is achieved is by deferring an amount of the total
cost of the vehicle to the end of the agreement. This amount is known as the
Residual Value (RV).
It is the customers responsibility to settle the final payment either though
additional finance, cash or settlement by part-exchange.
The Lease Purchase product and has no tie to a mileage contract. Repayment
periods are typically taken over 2, 3 or 4 years and settlement can be made at
any stage of the agreement. We would recommend that you select your anticipated
annual mileage to a realistic level so that a realistic Residual Value is set
for the vehicle. At the end of the agreement you have three options:
- If you want to keep the vehicle, you can simply pay off or refinance the outstanding balloon payment.
- You can come back to us and part exchange your vehicle for a new one. If the trade-in value is greater than the RV, the difference can be used towards a deposit on the next agreement.
- You can sell the vehicle privately and keep any profit over and above the RV.
Personal Contract Purchase
A Personal Contract Purchase (PCP) plan will
enable you to purchase your next car with lower monthly repayments. The way
this is achieved is by deferring an amount of the total cost of the vehicle to
the end of the contract. This amount is known as the Guaranteed Future Value
(GFV).
The Guaranteed Future Value plus your deposit is subtracted from the cash price
of the vehicle and your monthly payments are based on the balance (plus
interest on the balance and the GFV).
By
only repaying the difference between the cash price and the optional balloon
payment you are only financing the depreciation of the car.
At the end of the contract you have four options:
- You can return the vehicle to the finance company. As long as you have not exceeded the agreed mileage, you will have nothing more to pay.
- If you want to keep the vehicle, you can simply pay off or refinance the outstanding balloon payment.
- You can come back to us and part exchange your vehicle for a new one. If the trade-in value is greater than the GFV, the difference can be used towards a deposit on the next agreement.
- You can sell the vehicle privately and keep any profit over and above the GFV.
Why Apply Online?
- You are in no way obliged to buy the vehicle, but by applying you register an interest in the vehicle.
- You can submit your details at any time, our system is availiable 24hrs a day for your convenience.
- By arranging your finance in advance you can have the comfort of knowing your finances are in place.
- The whole process is confidential with no need to disclose personal details to our operatives.
- The service is provided on a secure server so your details are kept totally safe.
Impartial Advice
We are confident that our products are suited to a wide range of finance needs, but if you are not sure then the Finance & Leasing Association have produced an impartial guide to motor finance. Their simple guide to your finance options will explain how the different products work and their finance decider tool will help you choose which product is the most suited to your needs.
