Which funding solution is right for you?

Do you know the difference between Personal Contract Purchase, Hire Purchase and Lease Purchase? They are all available through us and the most convenient, safe and secure way to fund a vehicle purchase. Do you want to own your next new vehicle after a certain period or would you like to the option to hand in back at the end of the agreement? Read through our quick guide on the different funding solutions we have available for you and if you have any further questions, please complete our online contact form or contact your local dealership to speak to our trained Business Managers.

Personal Contract Purchase

This is the most popular way to fund a new or used vehicle purchase. A Personal Contract Purchase (PCP) plan will enable you to purchase your next car with a lower deposit and lower monthly payments compared to a conventional funding plan. The way this is achieved is by deferring an amount of the total cost of the vehicle to the end of the contract. This amount is known as the Guaranteed Future Value (GFV).

The Guaranteed Future Value plus your deposit is subtracted from the cash price of the vehicle and your monthly payments are based on the balance (plus cost of money on the balance and the GFV).

By only repaying the difference between the cash price and the Guaranteed Future Value you are only funding the depreciation of the car.

At the end of the contract you have four options:

• You can come back to us and part exchange your vehicle for a new one. If the trade-in value is greater than the GFV, the difference can be used towards a deposit on the next agreement.
• You can sell the vehicle privately and keep any profit over and above the GFV.
• You can return the vehicle to the finance company. As long as you have not exceeded the agreed mileage, as we have guaranteed the value, you will have nothing more to pay.
• If you want to keep the vehicle, you can simply pay off or refinance the Guaranteed Future Value.

Hire Purchase

Hire Purchase (HP) is very similar to borrowing a sum of money from a bank and paying it back over a fixed period of time, with interest. Hire Purchase is a type of secured loan which are often preferred over alternative (unsecured) loans because they allow a greater borrowing limit. The term 'secured loan' means exactly that, a loan that the lender can secure against an asset (in this case, the vehicle). HP gives you additional rights over those of a personal loan and is only available through dealers that have passed the stringent approval process of the finance companies.

Click here to watch our Hire Purchase video and learn more about its benefits.

Lease Purchase

Lease Purchase will enable you to purchase your next car with lower monthly repayments. The way this is achieved is by deferring an amount of the total cost of the vehicle to the end of the agreement. This amount is known as the Residual Value (RV).

It is the customers’ responsibility to settle the final payment either through additional finance, cash or settlement by part-exchange.

The Lease Purchase product and has no tie to a mileage contract. Repayment periods are typically taken over 2, 3 or 4 years and settlement can be made at any stage of the agreement. We would recommend that you select your anticipated annual mileage to a realistic level so that a realistic Residual Value is set for the vehicle. At the end of the agreement you have three options:

• If you want to keep the vehicle, you can simply pay off or refinance the outstanding balloon payment.
• You can come back to us and partexchange your vehicle for a new one. If the trade-in value is greater than the RV, the difference can be used towards a deposit on the next agreement.
• You can sell the vehicle privately and keep any profit over and above the RV.

Click here to watch our Lease Purchase video and learn more about its benefits.

Why Apply Online?

• You are in no way obliged to buy the vehicle, but by applying you register an interest in the vehicle.
• You can submit your details at any time, our system is available 24 hours a day for your convenience.
• By arranging your finance in advance you can have the comfort of knowing your finances are in place.
• The whole process is confidential with no need to disclose personal details to our operatives.
• The service is provided on a secure server so your details are kept totally safe.

Impartial Advice

We are confident that our products are suited to a wide range of finance needs, but if you are not sure then the Finance & Leasing Association have produced an impartial guide to motor finance. Their Simple Guide to your Finance Options will explain how the different products work and their Finance Decider Tool will help you choose which product is the most suited to your needs.

Why Apply Online?

• You are in no way obliged to buy the vehicle, but by applying you register an interest in the vehicle.
• You can submit your details at any time, our system is available 24 hours a day for your conveinience.
• By arranging your finance in advance you can have the comfort of knowing your finances are in place.
• The whole process is confidential with no need to disclose personal details to our operatives.
• The service is provided on a secure server so your details are kept totally safe.

Impartial Advice

We are confident that our products are suited to a wide range of finance needs, but if you are not sure then the Finance & Leasing Association have produced an impartial guide to motor finance. Their Simple Guide to your Finance Options will explain how the different products work and their Finance Decider Tool will help you choose which product is the most suited to your needs.