New Car Finance

You have a choice between Personal Contract Purchase (PCP), Lease Purchase (LP) and Hire Purchase (HP).

All are types of hire purchase agreements and are protected by the Consumer Credit Act 1974. The main differences are:

• Hire Purchase Agreements (HP) – Payments are made evenly over the period of the agreement
• Lease Purchase (LP) – Equal Payments are made over the period of the agreement together with an agreed final payment. The effect is a low monthly finance payment without mileage restrictions
• Personal Contract Purchase (PCP) – Equal payments are made over the period of the agreement together with a final payment (equal to the estimated future of the car) being made at the end. Provided that the agreed mileage has not been exceeded the vehicle can be returned to the finance company instead of making the final payment. The effect is a lower monthly finance payment. In all cases the car remains the property of the funder until the final payment is made by you.

At the end of a PCP agreement you have the option to either pay the final Payment and keep the car or simply to return the car to the finance company in full and final settlement of the outstanding amount. Alternatively you can sell the car and use any profit as the deposit on a new contract. The final payments are usually lower than the true estimated future value in order to encourage this.

The PCP scheme requires the first monthly payment to be made 28 days after delivery of the vehicle. Payments are made on the same day of the month for the period of the contract either by direct debit from your bank account or straight from your salary if your employer sets up a payroll deduction facility. All other payments for items such as Employee Protection, Maintenance and so on will be collected in the same way.

Normally an initial payment is made at the start of the agreement, with subsequent payments being made monthly over the period of the agreement.

Yes and we can do better than that. Part of our finance product is specifically designed for those in receipt of a car and business mileage allowance from their employer. Employees in receipt of a car allowance from their employer can pay no deposit and make the first payment after one month. Members not in receipt of cash/mileage allowance can also benefit from our product by opting to pay the initial payment (equivalent to one monthly payment plus the documentation fee) on delivery of the car and monthly thereafter.

This agreement is designed to allow you to return the car to the funder and for them to sell the vehicle on your behalf and to settle the final payment agreed at the beginning of the contract. This in effect guarantees the future value thereby removing any risk associated with the fluctuating depreciation in the value of used cars.

If you have the option of taking over your existing company car from your employer, we should be able to provide the finance on similar terms.

Unfortunately not. As part of the finance agreement you are obliged to service and look after the car, as you would normally expect. You can, however, remove the risks associated with the day today running costs of the car by taking out a maintenance contract that covers all servicing and repairs subject to normal wear and tear. This is a particular advantage if you drive a high annual mileage (e.g. 15,000 miles per annum plus).

This Act covers the finance agreement and lays down certain requirements for your protection that must be satisfied when the agreement is made. If they are not, the funder cannot enforce the agreement against you without a court order. The Act also gives you a number of rights including the right to settle the agreement at any time by giving notice in writing and paying off all amounts payable under the agreement, reduced by a rebate.

We have a range of insurances available to protect you covering areas such as Life, Accident, Sickness & Unemployment and also insurance write off (GAP) protection – visit the Employee Protection section of this site for further details.

Simply complete the Finance Proposal form on our website and email it together with your Vehicle requirements. If you have any other questions about finance please click the contact us button or feel free to give us a call, as we will be happy to discuss your requirements.

Because our new cars are already heavily discounted, most of the cars we sell aren't eligible for a further £2,000 discount under the Government Scrappage Scheme. There are however a few exceptions where the scheme can be applied to some of the new cars we sell, further reducing the cost of your new car (if you are eligible to take part in the scrappage scheme).

Keep checking the site for details or sign up for our newsletter to make sure you don't miss out on any great deals.

Some of the main points of the Scrappage Scheme are:

• Consumers will be offered £2,000 towards a new car or van if they trade in a 10 year old plus vehicle which they have owned for 12 months or more
• £300m will be made available to fund the scrappage scheme allowing up to 300,000 sales; It will finish on the 28th February 2010 or until the funding is used up
• Your old vehicle must be a Car or Light Commercial Vehicle not exceeding 3.5 tonnes (N1 class) and must be first registered in the UK before 31 August 1999 (”T” reg and earlier)
• The Claimant keeper must have been the registered keeper for at least 12 months before the new vehicle order date, have a UK address and the car to be traded in must have a current MOT certificate and be clear of finance
• The new vehicle nust be a new Car or Light Commercial Vehicle not exceeding 3.5 tonnes that is a UK specification vehicle and first registered in the UK on or after the date of the launch of the scrappage scheme and declared new at first registration in the UK with no former keepers. It must be registered to the same keeper as the registered keeper of the vehicle to be scrapped.

For more information from the Government's site, click here. (This will open a new window.)