Finance at JB Motors
If you want to buy your perfect car and you want lower monthly repayments, a PCP could be just right for you. Here’s how it works.
Approaching the end of a PCP?
With a PCP you get 3 Options at the end of the lease:
Option 1 Retain: Pay off the GFV & Keep the Car-In One lump sum or re-finance (subject to affordability & creditworthiness)
Option 2 Return: Hand the car back to Vauxhall Finance and start again (subject to terms & conditions)
Option 3 Replace: With a new car using any part exchange equity towards the deposit on a new car
Why would you choose a PCP?
In summary, with a PCP the advantages are:
1. Lower monthly payments than hire purchase for the same car over the same term
2. A low deposit at the start
3. You can pay off the whole finance mid-term if you want
4. Fixed monthly payments throughout the term of the agreement
5. With a PCP there’s additional flexibility at the end of the agreement on what you want to do with the car
If you want to buy your perfect car and you want to own the vehicle at the end of the agreement, a HP could be just right for you.
Here’s how it works.
Here's an example...
Let's say you want to buy a car costing £5000 and you can pay a deposit of £500. This leaves £4500 left to pay. If you decide you can pay over 3 years, let’s say the interest on the amount you’re borrowing is £400, so the total you’re paying back is £4900. Divide by the number of months, in this case 36, and you have a fixed monthly payment of £136.11. Nice and simple.
Until you pay off the finance, the car doesn't belong to you. Once you’ve made the last payment, the car is yours to keep.
Hire Purchase is great if you want a fixed monthly payment and want to own the car at the end. Monthly payments will be higher than a Lease Purchase or PCP agreement, but you won’t have a larger final payment either.
Why would you choose a HP?
In summary, with a HP the advantages are:
1. Fixed monthly repayments
2. No final large payment
3. Up to 5 years to pay back.
4. The loan is secured on the car, not your home.
5. If you repay early, you can save some of the interest charges.
6. You own the car at the end.
Car leasing or a contract hire is a brilliant way to make car ownership affordable and convenient. With car and van lease available at JB Motors, our lease offers options are made to fit your individual or business budget. Contact us for a personalised quotation.
Advantages of a contract hire agreement
1. No need to sell the car or make a balloon payment at the end of the term
2. Affordable monthly payments, particularly for vehicles with strong residual values
3. Up to 100% of VAT reclaimable for businesses
4. Maintenance can be included for predictable running costs