Financing your vehicle –

Once you’ve made your mind up what sort of car
you would like to drive the various different types
of finance on offer can seem confusing.

Here we’ve simplified the main types of finance we offer. Where possible we’ve tried to avoid using jargon but please feel free to email or call if anything is unclear. These are only intended as brief summaries and we’ll be happy to explain them fully to you.

Business Finance

Contract Hire
Sometimes referred to as an operating lease Contract Hire is an extremely simple and popular way of funding vehicles in the UK. Put simply, the car is rented over an agreed period (the ‘Term’) usually between 18 and 48 months to cover a pre-agreed mileage. Additional services such as maintenance, servicing, tyre replacement can be added on to the contract for a fixed monthly fee.

Contract Purchase
Similar benefits to contract hire with the opportunity to own the vehicle at the end of the contract. Typically used for higher value vehicles a ‘Balloon Payment’ is set at the start of the contract based on the likely residual value of the vehicle at the end of the contract term. Usually this is an optional payment whereby if the business decides not to own the car it can hand the vehicle back to the finance company at the end of the contract.

Personal Finance

Contract Purchase
Similar benefits to contract hire with the opportunity to own the vehicle at the end of the contract. Typically used for higher value vehicles a ‘Balloon Payment’ is set at the start of the contract based on the likely residual value of the vehicle at the end of the contract term. Usually this is an optional payment whereby if the business decides not to own the car it can hand the vehicle back to the finance company at the end of the contract.

Personal Contract Purchase (PCP)
Again very similar to PCH in that the vehicle is supplied for a fixed length of time and pre-agreed mileage. This time however an optional final payment called the Guaranteed Future Value (GFV, sometimes referred to as the ‘balloon payment’) is set at the start. This allows you to decide at the end of the term whether or not to make the final payment and keep the car (ideal if it’s worth more than the GFV) or hand the car back and walk away.

Finance options in summary:

The benefits of each financial package are sumarised below. To find out what the best financial deal is for you call us today on 0161 380 7060 to discuss your options.

Contract Hire

  • Off Balance Sheet Funding
  • Fixed Monthly Budgeting
  • Low Deposit
  • No Vehicle Depreciation Risk
  • VAT Partially (or wholly) Recoverable
  • No Hassles Upon Disposal

Contract Purchase

  • Fixed Monthly Budgeting
  • Low Deposit
  • Capital Allowances Available
  • No Vehicle Depreciation Risk
  • Option to Own the Vehicle

Personal Contract Hire (PCH)

  • Fixed Budgeting
  • No Depreciation
  • No Hassles Disposing Of The Car
  • No Balloon Payment To Find
  • Simplicity
  • Low Initial Payments (Typically equivalent to 3 Monthly rentals)

Personal Contract Purchase (PCP)

  • Benefits are similar to those with PCH, typically initial payments are low but if you decide to pay more at the start the monthly outlay will reduce.
 

Please note: This section is only a brief guide. Please Contact us if you require more detailed explanations.