New Car Finance Products
Capital Car Finance specialise in three new car finance methods of funding namely Personal Contract Purchase [PCP], Lease Purchase [LP] and if you are a business user, Balanced Payments [BP].
All these new car finance products will assist you in buying the highest specification car for the lowest monthly outlay, please find a summary of each car finance product below, this should give you a better understanding of how all our car finance products work.
Lease Purchase is sometimes referred to as Hire Purchase with a balloon and is structured in a similar way Personal Contract Purchase, however unlike PCP there is no guarantee or GMFV offered at the end of the agreement, customer can defer a capital lump sum amount until the end of the agreement, this is known as the Residual Value. Find out more...
Personal Contract Purchase is one of the best ways to finance a new car, it allows customers to purchase the vehilce of choice at a very attractive fixed monthly car finance payment, with the added benefit of a minimal initial deposit outlay and a guaranteed minimum future value (GMFV) at the end of the agreement. Find out more...
Balance Payments can be offered where the amount of finance required is over £25,000 and is one of the most flexible types of vehicle finance products available at the moment, because it offers business customers lower monthly payments, compared to other traditional car finance products. Find out more…
Hire Purchase (HP)
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.
Contract Hire & Leasing
Contract Hire and Leasing is basically a long-term rental agreement and can include service and maintenance, breakdown cover and a replacement vehicle and in most cases, includes the road fund licence for the duration. Your monthly payments will be subject to VAT though as its a rental product, if you are a VAT registered business you can reclaim this back from HMRC on your VAT return (100% for commercial vehicles and 50% for cars).
The monthly rental is calculated from the length of contract and the estimated miles driven. At the end of the period the vehicle is returned to the contract hire company as the leasing company always owns the vehicle. It is treated as "off balance sheet funding" in a company's accounts.
This is a completely risk free package for our customers and almost always works out cheaper than outright purchase of a vehicle. This is due to the extra discounts and support received from manufacturers, which are passed on to the hirer in the monthly rental.
existing deal at a much lower rate and save you £££, click here for more infoCall 01925 589020 Buying a used car?We have LP/PCP for cars up to 5 years old from 5.9% APRCall 01925 589020