- Financing your new car has never been easier.
Talk to our highly trained salesman and Business Manager, who will take you through all you need to know about financing your new car. Allow us to help find the most suitable monthly payment scheme, deposit amount and repayment amount you can afford to get you driving in a new
Before you visit us, prepare yourself by browsing through the finance options available on our website on each car. Simply click View Finance and pick your deposit amount, monthly payment amounts and see how little it could cost you to be on the road driving as soon as possible.
We work with numerous financial providers ready to provide a quote instantly based on your eligibility. Allow us to do the hard work for you and simply provide you with a quote, hopefully that'll put a smile on your face.
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Below you will see a brief description of each of the finance solutions that are available to you.
These are designed so we can tailor the finance to suit your budget and make your perfect car affordable.
Hire Purchase (HP)
1) Once you’ve found a car you want to buy, you’ll know the amount you want to borrow.
2) Dealers usually ask for a deposit of 10% (But can be as low as 0% from Premier) of the car's price
3) You then pay fixed monthly payments over a period of one to five years, and typical APR interest rates for HP tend to be between 4% and 8%. Some dealers will offer 0% finance – but this is more likely if you’ve a chunky deposit to put down. Remember, if you fail to keep up payments the finance company is entitled to seize the car.
What happens at the end of the finance deal?
Once all repayments have been made, you pay a final fee – referred to as the 'option to purchase' fee – to own the car outright. This covers the cost of transferring ownership to you, and is typically around £100-£200. It should be mentioned in the HP agreement you sign at the start – but if you can't find it, make sure you ask the dealer how much the fee is.
Let’s take an example of how much you'd pay in total… :)
So in total you’d pay £15,208.
- A PCP deal is basically a loan to help you get a car. But unlike a normal personal loan, you won’t be paying off the full value of the car and you won’t own it at the end of the deal
It’s one of the more complex financial products available to help you buy a car, but it can be broken down into three main parts:
1) The deposit (usually around 10% of the car's price, however it can be as low as 0% with Premier).
2) The amount you borrow. The amount you'll have to borrow is based on how much the finance company predicts the car will lose in value over the term of the deal (usually 24 or 36 months or up to 60 months) + minus the deposit you've put down. You’ll pay this amount off during the deal, plus interest. So you’re not paying off the full value of the car. Typical APRs are 4%-7%.
3) The balloon payment(a balancing payment you pay IF you want to own the car). Also often referred to as the Guaranteed Minimum Future Value (GMFV), this is how much the dealer expects your car to be worth after your finance deal ends. It's agreed at the start of your deal. You don’t have to pay this, as you get a choice of what to do at the end of the deal. But it is the sum you’ll pay if you want to keep the car.
How does it work, can you give an example?
Ok, so this might sound a bit complicated so
Let's imagine you sign up for a PCP over three years to buy a car with a ticket price of £18,000. You put down a deposit of £2,000 and the finance company calculates that the car will be worth at least £8,000 after three years. Here's how that would look...
Total: £18,000 + plus interest
We mentioned that you can buy the car at the end of the deal but you don't have to - in reality you have three options:
1) Buy the car by paying the balloon payment. Pay this then you'll own the car outright. Do note that most finance companies charge an added fee if you buy the car to transfer the ownership of the car to you (usually around £100).
2) Hand the car back and walk away. This means you have nothing more to pay (subject to damage, and over-mileage charges)
3) Get a new car. This is the most common option for people taking a PCP deal. Usually at the end of a PCP deal, the car will be worth slightly more than the balloon payment. And if this is the case, your dealer will usually ask if you want to use that 'equity' as a deposit on a new PCP deal on a brand new car. For example, if the car’s actual value at the end of the deal in the example above was £9,000 and the balloon payment is £8,000, you’d have the difference of £1,000 that you could use as a deposit to roll into another deal.
Usually people go for another PCP, but you don’t have to. Sadly, you can't take the extra as cash - unless you buy the car and then sell privately (or get agreement from the finance company to sell it & then pay off the finance)!
You don’t have to worry about the car being worth less than the balloon payment - that is if it's lost more value than was expected at the start of the deal. If that happens, the sensible course is just to hand the car back - the finance company takes the hit.