The options for financing a new car can be confusing, to say the least. But here at Vantage, we want to help you determine the right choice for you. One that you understand fully, that suits your budget and allows you to manage your repayments sensibly.
There are several options for car financing, so we’d like to take you through your options.
Personal contract plans (PCP) tend to have a lower monthly payment than HP, even with a maximum term of 49 months, with a large balloon payment at the end of the agreement.
You have 3 options at the end:
PCP’s are ideal if you change your car often and most people choose a term that’s equal to how long they plan on keeping the car.
1. Monthly payments on a car financed by PCP are usually lower than if your car is financed by a Hire Purchase agreement.
2. If you decide not to buy the car, you can simply walk away when you have made all your monthly payments over the agreement term.
3. If your car is worth more than the Guaranteed Future Value then you can use that equity towards a deposit on a new car.
Contact your current finance provider for a final settlement.
Our centre teams are all trained and SAF qualified, meaning they have the knowledge and information to help you every step of the way.
Hire purchase is a method of paying for your car over set monthly payments on a fixed term with a fixed rate of interest.The term can range from 12 to 60 months depending on your circumstances and subject to status you can borrow anything from £1000 to the full value of the car.Once the final payment has been made you own the car outright.
1. You will be able to order a new or used car and drive it away without having to buy it outright.
2. Unlike PCP you will not need to estimate your annual mileage and so therefore will not be subjected to any excess mileage charges.
3. Once you have made your final monthly payment, including the option to purchase fee, you will have full ownership of your car.
1. Your monthly payments maybe higher than PCP as you are paying off the full value of the car.
2. You will not be able to sell the car without settling your agreement.
3. You will not own the car until you have made all of your repayments.
You can normally settle your agreement early by asking the finance company to provide you with a settlement figure. However, the finance company will require you to pay off the difference between what your car is worth, and what you still owe and there may be a difference which is known as negative equity. Contact your current finance provider for your settlement figure.
Our centre teams are trained and SAF qualified, meaning they have the knowledge and information to help you every step of the way.