Finance; What's best for me?
85% of our clients use our competitive facilities its important to us that we get the perfect finance package to suit you whether its personal or business finance. The most popular ways to finance is Hire Purchase or a Personal Contact Purchase
Hire Purchase (HP)
You pay off the vehicle through a series of monthly payments. At the end of the contract period the vehicle becomes your property. The monthly payment is determined by the amount of deposit paid, the period of the contract and the sale price of the vehicle.
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, a car).
Personal Contract Purchase (PCP)
You will make an initial payment, followed by a series of monthly payments and a final large, but optional payment, called a GFV (Guaranteed Future Value) or commonly know as balloon.
A PCP plan will enable the customer to purchase a new vehicle with lower monthly repayments by deferring a large amount of the total cost of the vehicle to the end of the contract, GFV is set by the finance company and is based on the chosen vehicle and the annual mileage stipulated by the customer. At the end of the agreement you have the option to return the vehicle to the finance house in good condition without exceeding the annual mileage (excess mileage fee's apply) or keep the vehicle and either pay the final payment (GFV) or re-finance it. Or use the vehicle as a trade in against a new vehicle.
Before applying for any finance arrangement you must be aware that this can show on your credit file and affect your credit score in the future. All personal information will be kept for the purpose of obtaining finance and credit only and will be used in accordance to the Data Protection Act 1998.