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Hire Purchase is the classical way to finance your vehicle. It involves paying off the cost of the vehicle with interest on a monthly basis. Despite being a great way to personally finance your vehicle, Hire Purchase is also a popular finance choice for businesses.
1. You let us know how much deposit you would like to pay.
2. From this we calculate, including interest, the monthly payments for the duration of the contract.
3. At the end of the agreement, after all payments have been made (including the Option to Purchase Fee), ownership of the vehicle is transferred to you.
The interest rate charged on the finance will remain unaffected by any future changes in interest rates.
The initial payment is flexible.
Fixed monthly payments are not subject to VAT.
Taxation benefit from writing down allowance.
No mileage restrictions.
What is PCP? Nissan Preferences is our Personal Contract Purchase product that stands out from the crowd in terms of the choice and flexibility.
1. You let us know how much deposit you would like to pay.
2. We will calculate your monthly payment based on the maximum annual mileage to suit your needs.
3. We will calculate your Optional Final Payment depending on your driving requirements.
You will get a choice of three options when your Nissan Preferences agreement comes to an end.
Perference One - Drive away a new Nissan
If the vehicle is worth more than the Optional Final Payment amount, you could part exchange your vehicle by putting the difference towards a deposit on a new Nissan.
Preference Two - Return your Nissan
Simply return your Nissan in good condition, within the agreed mileage limits, and pay nothing.
Preference Three - Keep your Nissan
Pay the Optional Final Payment and be transferred ownership of the vehicle.
The deposit is negotiable.
Fixed monthly payments.
Option to change your Nissan every 2 to 3 years.
Flexible end of agreement options.
Firstly, we’ll agree a future value for your car, based on how much you drive. Then you’ll pay a flexible deposit followed by fixed monthly payments and the end of your contract you’ll have three options:
Pay a fixed deposit, depending on the price of the car you want. The rest is split into monthly payments over two to five years. At the end of your contract make your final payment and the car’s all yours.
Personal Contract Purchase (PCP) is a finance product that allows you the opportunity to buy a new or a used car.
It is similar to a Hire Purchase agreement as you will usually pay an initial deposit, followed by monthly instalments over a term typically between 18 to 48 months.
What makes PCP different to Hire Purchase (HP) is that your monthly instalments are paying off the depreciation of the car, and not its entire value, over the course of the term. Then, when you get to the end of your agreement, there is a final, balloon payment that must be made if you want to keep the car. The balloon payment is often referred to also as the Guaranteed Future Value (GFV).
When you have chosen your vehicle, you will then agree your annual mileage and decide on the agreement term with one of our Business Managers.
We will then determine the Guaranteed Minimum Future Value (GMFV) of the vehicle at the end of the agreement and work out a deposit and monthly amount that works for you.
At the end of your agreement you will then have three options:
Return – Simply return the car the back to us
Retain – Keep the car by paying the optional final payment
Renew – Trade it in for another car
For a quotation, help, or advice contact us and ask to speak to one of our Business Managers.
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. On the other hand, you may find that at the end of your term your car is worth more than the Guaranteed Future Value, which means you will have some positive equity to contribute towards your next car.
Hire Purchase is a way to finance buying a new or used car. You will normally pay an initial deposit and will pay off the entire value of the car in monthly instalments. When all the payments are made, the Hire Purchase agreement ends, and you own the car outright.
The short answer is yes, you can end your finance early. There are different provisions within each finance agreement that allows you to do just that. If you have got through two-thirds of the way through your finance agreement, the options to end the finance agreement early open up.
For a Hire Purchase agreement, there is an option of paying it off early through a settlement fee. A settlement fee covers the cost of any remaining unpaid instalments and interest payments remaining on the agreement. Once the settlement fee is paid, you take full ownership of the car early.
Under a Personal Contract Purchase agreement, you can also pay a settlement fee for bringing the agreement to an end early. After that, you can choose to hand the car back or you have a second option. Through a PCP agreement, you can take full ownership of the car by paying off the remaining Guaranteed Minimum Future Value also known as a balloon payment.
