Your Dream Car Broken Into Small Amounts...
All our car finance products will help you to buy the highest specification car for a lower monthly outlay and are available for all cars up to 5 years old.
Please find more detailed information below to give you a better understanding of how all these car finance products work.
If you are buying your vehicle from a UK motor dealer and are not happy with what they have to offer, then why not give us a call to see if we can save you money!
The car finance products we offer are Personal Contract Purchase (PCP) Lease Purchase (LP) or Hire Purchase (HP) car finance schemes, all of which are designed to help save you money compared to using dealer finance.
We specialise vehicle, as our finance providers have favourable finance terms available in this sector, so if you are buying brands such as Audi, BMW, Mercedes or Land Rover, we should be able to offer you a fantastic deal!
Our Representative APR (Annual Percentage Rate) which is the total charge for the loan including interest, is generally much lower than the finance offered by your car dealer and is currently set at just 6.4% APR, this means that the majority of our customers are approved at this rate (hence representative).
The APR offered upon acceptance however may differ slightly depending on your credit history and personal circumstances, this is now the same for every broker and dealer in the UK as new laws were brought in by the FCA in January 2021.
Each loan application is assessed by our lender on an individual basis, so it’s always a good idea to check your credit history first prior to making an application with us.
LEASE PURCHASE (LP)
PCP CAR FINANCE (PCP)
PCP is one of the most popular types of funding a new or used car today, PCP allows customers to purchase a car of their choice at a fixed monthly finance payment, with a low initial deposit outlay and a guaranteed minimum future value (GMFV) at the end of the agreement.
HIRE PURCHASE (HP)
Hire Purchase is a type of secured loan which are often preferred over alternative (unsecured) loans.
HP gives you additional rights over those of a personal loan because it’s secured on the vehicle.
Contract Hire is available for businesses and is basically a long-term rental agreement which can also include service and maintenance too.
Your monthly payments will be subject to VAT though as its a rental. If you are a VAT registered UK business you can reclaim this back from HMRC.
The monthly rental is calculated from the length of contract and the estimated annual mileage. At the end of the agreement period the vehicle is returned to the contract hire company.
Personal Contract Purchase
PCP allows customers to purchase a car of their choice at a fixed monthly finance payment, with a low initial deposit outlay and a guaranteed minimum future value (GMFV) at the end of the agreement.
PCP car finance may be particularly useful if you are a company car driver opting out of the company car scheme (Cash for Car), because you may be able to use your company car allowance or mileage reclaims to fund your monthly PCP payments.
Personal Contract Purchase may provide you with the benefits of driving a higher specification vehicle for a lower monthly payment. Unlike Hire Purchase agreements, this is achieved by deferring a percentage of the total cost of the vehicle until the end of the contract which is known as the GMFV, then at the end of the agreement the customer has the following three options…
Lease Purchase is sometimes referred to as Hire Purchase with a balloon and is structured in a similar way to Personal Contract Purchase (PCP).
The customer will normally benefit from a slightly lower finance rate with a Lease Purchase product as there is no guarantee offered at the end of the agreement, the deferred capital lump sum amount at the end of the agreement is known as the Residual Value (RV), and this has to be paid by the customer for outright ownership. Deposits for Lease Purchase are flexible and are normally a minimum of 10% and a maximum of 50% of the total vehicle price, repayment periods are taken over 3 or 4 years typically.