We offer financing on every vehicle that we sell, giving our customers more options when looking for their perfect car. It can be quite a daunting prospect, but we’re here to help with this handy guide. It’s worth noting that numbers and rates vary from one circumstance to the next, so this is only a broad explanation – hopefully you’ll find it worth reading.
What is Vehicle Finance?
Car finance, simply put, is a loan that you take out specifically to buy a car. Like most loans, you have to pay a deposit (usually at least 10%), and interest on the monthly payments. We offer two different types of financing – Hire Purchase, and Personal Contract Purchase – which we explain in more depth below.
Why use it?
Finance plans help you to spread the cost of a vehicle out over a set time period in predictable amounts. This way, if you can’t afford it outright but have a secure, steady income, you can still buy the car that you want. You can even personalise it, changing how big a deposit you pay, or how many months you pay the balance over, meaning you can find an option for any budget!
How does car finance work?
We’re just a simple, local garage, and so don’t do these loans ourselves. Instead, we work in partnership with Motonovo to help find you the best possible finance plan for your circumstances.
You might know that there are two types of car financing – Hire Purchase (‘HP’) and Personal Contract Purchase (‘PCP’). Both are similar in that you pay a deposit and a monthly fee, but they work quite differently. To help you navigate through the jargon, we’ve broken them down a little for you.
HP – Hire Purchase
Hire Purchase is the more straightforward option for car finance, with all our cars having it as an option.
- You decide precisely how much to put down as a deposit, with no minimum or maximum value. If you put down more, your monthly payments will frequently be lower.
- With fixed interest rates, you know exactly how much you’ll pay each month from the day you sign on the bottom line.
- Repayment terms tend to be flexible, helping you stick to your budget.
- Beware though, you don’t own the vehicle until you’ve made the final payment. That means you can’t sell it or give it away until the balance is settled, and it could get repossessed if you don’t keep payments up.
PCP – Personal Contract Purchase
PCPs are a little more complex than HPs, and aren’t available on all vehicles.
- They tend to have lower monthly payments than a HP for the same vehicle, due to the lump sum involved at the end of the term.
- Similar to above, you get flexible repayment terms, fixed interest rates, and a variable deposit.
- It’s up to you whether or not you buy the car outright at the end of the term. This way, you can return it, or use it as a part exchange on something new – perfect if you like changing your vehicle on a more regular basis.
- As before, you don’t own the car until you make the final ‘balloon’ payment (a larger sum at the end of the term) – no selling or giving it away, and a risk of it being taken from you if you don’t make your payments.
- If you go over the agreed upon annual mileage, you’ll incur additional charges if you agree to hand the car back at the end of the term.
- It’s entirely your responsibility to maintain the car, both mechanically and aesthetically with services, repairs, and the like. This can affect your finances if you choose to return the car at the end of the term.
How do I apply for it?
We list all of our quality used vehicles on this very website (you might even have looked at some already!). On the right side of each page, you can apply directly for vehicle finance on that specific car.
All you have to do is fill in three boxes – the percentage you want to pay as a deposit, over what period you want to pay it back, and the maximum number of miles that you’ll travel in that car annually. After that, simply update the quote and hit Apply Now. You’ll then be whisked away to apply for it with Motonovo, with no obligation.
Alternatively, speak with our sales team, and they’ll be happy to help you find the perfect deal.