We pride ourselves on our transparent “one to one” professional approach, which is why most of our customers come back to us time and time again, please read our testimonials page for more information. Our car finance products are available for all BMW vehicles up to 5 years old, providing they are supplied by an approved UK dealership, we have deals available for both business customers and private individuals.
Please find information below on all our BMW car finance products, alternatively why not give us a call to discuss the various options with a dedicated experienced adviser, you can call us either on our freefone number 0800 043 4340 or national 01925 589020.
Personal Contract Purchase
Probably the best way to purchase a new or used car today, it allows customers to buy a car of their choice at attractive fixed monthly finance payment, with the benefit of a low deposit outlay and a guaranteed minimum future value at the end of the agreement.
Lease Purchase
(LP)
Sometimes referred to as Hire Purchase with a balloon and is structured in a similar way PCP, however unlike PCP there is no guarantee offered at the end of the agreement, customer can defer a capital lump sum amount until the end of the agreement.
Hire Purchase
(HP)
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.
Capital Car Finance Specialise in New & Used BMW Car Finance including, BMW PCP Finance, BMW Lease Purchase and BMW Hire Purchase products.
BMW PCP Car Finance
How does it work
At Capital Car Finance we have the ability to offer our customers a very low rate of interest (From just 4.9% APR) together with industry leading GMFV’s making BMW cars very affordable.
PCP Car Finance is very useful if you have previously driven a company car and are looking to opt out of a company car scheme, if you take the cash allowance from your company, you can use it to fund all or part of your purchase and claim business mileage in addition to fund your monthly PCP payments and avoid paying excessive company car tax.
Monthly payments are fixed with PCP for the repayment period, which is normally two, three or four years and the added flexibility of PCP car finance gives you several options at the end of the agreement.
PCP – Option 1
Return the vehicle to the finance company and if you have not exceeded the agreed mileage, there is nothing more to pay.
PCP – Option 2
You may keep the vehicle and simply pay off or refinance the outstanding Guaranteed Minimum Future Value [GMFV] payment.
PCP – Option 3
You can part-exchange your vehicle and if the trade-in value is greater than the GMFV, the difference is yours to keep.
Benefits of PCP Car Finance
- Lower deposits.
- Flexible Term – 24 to 48 Months.
- Fixed repayments.
- Guaranteed final payment.
- Lower monthly payments.
- Opportunity of equity.
The BMW personal contract purchase plan provides the benefits of driving a higher specification BMW for lower monthly oulay, unlike traditional methods of car finance, this is achieved by deferring a percentage of the total cost of the BMW to the end of the contract, which is known as the guaranteed minimum future value.
This guaranteed minimum future value (GMFV) is the key difference between PCP and traditional forms of car financing such as Hire Purchase or personal loan. The GMFV plus your deposit is subtracted from the selling price of the BMW and your monthly payments are based on the balance (plus interest on the balance and the GMFV). You will make lower payments than traditional financing simply because you are essentially only funding the depreciation of the vehicle.
Excess Mileage
At the beginning of the agreement, you decide on the total mileage you expect to do. If, at the end of the agreement, having chosen to hand your BMW back to the finance company, your mileage exceeds the agreed level, you simply pay a fixed amount for every extra mile.
Wear & Tear
It is in your interest to minimise ‘wear and tear’ on your Vehicle and not exceed the agreed mileage. When the agreement has finished, the vehicle may well be worth more than the GMFV, providing you with extra value, In simple terms ‘normal wear and tear’ means that for its age and mileage, your BMW is in fair working order, condition and repair.
Benefits of Lease Purchase
- Lower deposits available.
- Flexible Term.
- Cost effective rentals due to residual values.
- No tie to mileage contract.
- No lock in and settlement can be made at any stage of the agreement.
Lease Purchase is sometimes referred to as Hire Purchase with a balloon and is structured in a similar way to Personal Contract Purchase or PCP car finance.
The customer will normally benefit from a slightly lower finance rate with a BMW lease purchase car finance product as there is no guarantee offered at the end of the contract, the deferred lump sum amount at the end of the agreement is known as the Residual Value (RV) or balloon, and this has to be paid by the customer for outright ownership of the vehicle. Deposits for Lease Purchase are flexible, normally aminimum of 10% and a maximum of 40% of the total vehicle price, repayment periods are taken over 3 or 4 years typically.
The Residual Value (RV) (sometimes called the balloon) at the end of the agreement reduces the regular monthly payments accordingly, thus making vehicles that traditionally have a strong Residual Value (RV) like BMW, more suitable for this type of product as they make repayments far more affordable.
The Residual Values (RV) is calculated and set at the beginning of the lease purchase finance agreement but is not payable until the end of the contract, there are realistically two options for an BMW lease purchase at the end of the term, 1. Pay off the residual value in cash or settlement by part-exchange or 2. Some lenders will allow the residual value to be spread over a secondary period and refinanced again.
