New Car Finance Deals

Published Date: 15th Oct 2013

At uk car discount we are always being contacted by customers with new car finance offers from franchise dealers, finance companies and banks and they want us to match the deal and take advantage of the huge new car discounts available via our website.

As far as New Car Finance is concerned uk car discount offer Hire Purchase and Lease Purchase as the main funding options for customers.

Hire Purchase – A hire purchase agreement is a finance plan that allows a customer to pay for their vehicle in equal instalments so at the end of the 24, 36, 48 or 60 months term they own the vehicle. It is always worth noting that in the event you take a Hire Purchase (HP) agreement out that if you fail to make the repayments and default, most lenders will include a contract provision allowing them to take the car back from you.

Lease Purchase – A lease purchase agreement is similar to Personal Contract Purchase (PCP) in that the leasing company considers a retail value of a car and calculates an estimated future value of the vehicle for the end of the contractual period based on its depreciation. This is known as residual value. You can place a lump sum or deposit down-payment on the car and then make monthly payments on the difference between the retail value and the residual value. As a consequence, the more the vehicle ‘holds its value’, the better the deal – meaning luxury cars are often better for lease purchase deals.

The one fundamental difference between lease purchase and PCP is that PCP gives you the 'option' to buy the car outright at the end of the contract period; but with lease purchase you already have an agreement to buy the car and there is no option to the end of the contract to return the vehicle. PCP agreements offer a fairly uncomlicated solution to people who want a brand new vehicle every 2-4 years on a fixed monthly budget.

Therefore at the end of the lease period, you must make a final “balloon” payment to secure title to the vehicle and this can be done through a cash payment or alternatively with additional finance or a part-exchange.

A typical lease purchase agreement will last between two-four years, though with most new car finance companies it is possible to settle the agreement at any point during this period.

If you are looking for New Car Finance visit www.uk-car-discount.co.uk or call uk car discount on 0161 946 3500 and we will be happy to discuss the different forms of finance available to purchase your new vehicle. We have a launched a dedicate website where you can compare the best leasing and contract hire new car deals