Your Car... Your Finance... Your Way

Finance Made Easy

We know that buying a car is one of the most expensive purchases you will make, and we understand that choosing the best way to make motoring more affordable can be very confusing. With this in mind, we decided to make the different options available as clear as possible, so you can purchase your next vehicle with confidence! 

Each of our dealerships has a dedicated Business Manager who can talk you through the different options when you are ready to discuss finances, meaning you can work out a payment solution that is tailor made, just for you! 

So, what are the options? 

Personal Contract Purchase (PCP)

This is the most popular solution for financing your new or used vehicle with a flexible solution. The process begins with your Business Manager calculating the Optional Final Payment for the car you wish to purchase. This is the guaranteed value of your vehicle at the end of the agreement. Once this has been decided we will calculate your monthly payments based on the amount of deposit you have and the current offer interest rates. This means that your monthly payments will be as low as possible based on your affordability, deposit and optional final payment. PCP agreements are typically 12-48 month agreements.

 

The agreement has three stages - Deposit - Monthly Payments - Optional Final Payment 

You may be wondering why the Final Payment is "Optional", well that's because you have 3 options at the end of the agreement! 

Option 1 

Change your car for a new one! 

Option 2

Keep the Car

Option 3

Give The Car Back

You can part-exchange your car at any of our dealerships, where the Sales Manager will value your car. If your car is worth more than the Optional Final Payment, you can use the difference as a deposit for your new vehicle. Plus, if you stay with the same brand you will be eligible for the loyalty offers such as extra deposit contribution! 

If you would like to keep your car, you can just pay the Optional Final Payment. There are two options here:

  • Pay one lump sum 
  • Re-finance the balance, your Business Manager will help you with this.
You can simply return the car. If the car is worth more than the Optional Final Payment, the difference is yours. The mileage and condition of the car will be assessed and if you have exceeded the original agreed mileage limit or the car is in need of repairs (other than routine wear and tear), then there may be charges, as the vehicle value would have differed from the original agreement. 

 

Hire Purchase

This method of finance means you just decide how much deposit you have and the period of time you would like to pay the loan back. During this period, the amount you borrow plus the interest are repaid by fixed monthly payments. 

The interest is calculated at the beginning of the agreement and remains fixed for the length of the agreement. This means that the amount you owe isn't affected by any future changes in interest rates. 

At the end of the agreement, subject to payment of a nominal option to purchase fee, you take outright ownership of the car. 

Contract Hire/Personal Contract Hire

Contract Hire agreements are usually taken out by business customers as the payments are regular and VAT efficient. However, there are Personal Contract Hire solutions too. These options include a deposit which is usually 6 months of your monthly payment upfront followed by regular monthly payments over 12-60 months. 

The difference between contract hire and hire purchase is that the contract is fixed and therefore you cannot come out of this early, you must pay the regular payments for the duration of the contract. 

 

Benefits of this method are: 

  • Road Fund Licence (road tax) is included in your single monthly payment
  • You can include maintenance packages within your monthly payment
  • If you include a maintenance package, the only outgoings for the driver are insurance and fuel
  • No residual value risk
  • Low initial outlay
  • Hire new or used vehicles

For businesses:

  • You can reclaim VAT for up to 50% of your monthly payment and up to 100% on the maintenance element. 
  • Claim Hire Rental Tax allowances
  • Additional credit line
  • Cash flow benefits

Have a question? We're sure we can help.
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