What types of finance are available?
You have a choice between Personal Contract Purchase (PCP), Lease Purchase (LP) and Hire Purchase (HP).
What is the difference between PCP, LP and HP agreements?
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.
What happens at the end of the PCP agreement?
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.
How are PCP payments made?
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.
When are the PCP payments made?
Normally an initial payment is made at the start of the agreement, with subsequent payments being made monthly over the period of the agreement.
I dont receive my cash allowance until the end of the month; can I defer the initial payment until the end of the first month?
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.
What is the purpose of the Sales Agency Agreement linked to the PCP Contract?
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.
Can I finance my existing company car?
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.
Is servicing and maintenance, free?
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).
You mention the Consumer Credit Act what does it do?
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.
What happens if I lose my job?
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.
How do I apply for finance?
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.
|
0845 170 7770
