Once you have found the car or van that meets your needs you will then be looking at financing its purchase, but which finance option is right for you? The answer to this question depends on if you want to own the vehicle outright after a period of time or would like the option to either hand the vehicle back or trade the vehicle in for another car or van.
At Telford Motors we offer a range of finance options, some are for retail customers and some for our Business customers. lets take a look at your options:
The vehicle is paid for with bank notes, suitable for people who wish to own the vehicle out right. The drawback with this method is that it commits a large amount of money and there is the security risk of carrying a large amount of money from your bank to the dealership. A safer way is to use a Bankers Draft or Building Society Cheque.
Personal Contact Purchase
A Personal Contract Purchase plan such as Peugeot Passport allows you to purchase your car with much lower monthly repayments. The payments are lower because some of the total vehicle cost is deferred to the end of the contact. This differed amount is called the Guaranteed Future Value (GFV).
At the end of the PCP contract you have three options:
- Return the vehicle and so long as you have not exceeded the agreed mileage, you will have nothing more to pay.
- Pay off the GFV and then the vehicle is yours.
- Come back to Telford Motors and part exchange the vehicle for a new one. If the trade-in value of the vehicle is greater than the GFV, the difference can be used towards a deposit on the your next PCP agreement.
PAYMENT WAIVER - A new feature in retail finance contracts from Peugeot Financial Services. PAYMENT WAIVER is included free of charge in all retail packages. This will benefit customers who fall into financial difficulty following INVOLUNTARY REDUNDANCY. Peugeot Financial Services will waive up to a maximum six instalments per agreement. The customer will not be required to pay these back.
Just Add Fuel
Just Add Fuel is the new way of both purchasing your car and paying its running expences. You get fixed price motoring for a full three years for just one monthly fee
With Just Add Fuel you get:
- Comprehensive Insurance+
- Roadside assistance
- Road Tax*
As the offer says the only thing you need to do is put fuel in your new Peugeot!
*The first year Road Fund Licence (RFL) is included in the on the road price. The Dealer will provide customers with a cheque equivalent to twice the current RFL cost. It is the customer’s responsibility to apply for RFL for years 2 and 3. Terms and conditions apply. Participating Dealers only. Just Add Fuel (JAF) package subject to status and conditions.
†Minimum age from 18 years old on selected models. Terms and Condition apply. 3 years Peugeot Motor Insurance will be provided and underwritten by UK Insurance Ltd , which is authorised and regulated by the Financial Conduct Authority. A guarantee may be required. Written quotations available on request from Peugeot Financial Services, Quadrant House, Princess Way, Redhill, RH1 1QA.
With hire purchase you usually (but not always) will have to put down a deposit of 10% of the value of the car. You then pay the remainder of the value of the car in instalments, over a period of one to five years.
You are in effect hiring the car until you make your final payment, after which you own it.
Hire purchase is arranged by the car dealer, but brokers also offer this service. The rates are often very competitive for new cars, but less so for used cars.
The loan is secured against the car, which is why you can’t own it until you’ve made your last payment. Make sure you understand the terms and conditions of your loan before signing the contract.
Pros of hire purchase
- Flexible repayment terms (from one to five years) to help fit in with your monthly budget – but the longer the term the more you’ll pay in interest.
- Relatively low deposit required (normally 10% of the car’s price).
- Fixed interest rates so you know exactly what you’re paying every month for the length of the term.
- Once you’ve paid half the cost of the car, you may be able to return it and not have to make any more payments – find out more about cutting car finance costs.
Cons of hire purchase
- You don’t own the car until you’ve made your final payment, which means that if you get into financial difficulties the finance company could take it away.
- Your deposit and term length will affect your monthly payments. Your monthly payments are likely to be higher the smaller the deposit is and the shorter the term of the loan.
- Until you’ve paid a third of the total amount payable the lender can repossess the car without a court order.
Contract Hire allows the use of a vehicle (or number of vehicles) for a fixed monthly amount. Once you have decided on the vehicle and give an indication of the estimated yearly mileage the monthly amount can be calculated. Contract Hire can also have a vehicles maintenance costs factored into the monthly amount. This would take care of items such as scheduled servicing.
At the end of the contract the vehicles are returned. For businesses Contract Hire is a tax efficient way of running a vehicle