For most people, buying a car can be the second biggest purchase they ever make. With so many vehicle finance options available on the market, understanding the products and what works best for your budget can be confusing, particularly in the current financial climate, where obtaining flexible and competitive terms is more important than ever.
Personal Contract Purchase (PCP)
"The most flexible and popular way to finance a car, giving you the opportunity to own more car, more often, and providing a guarantee for your vehicle value at the end of the contract. Available with small or zero deposit."
How does it work?
- Select the car that's best for you - new or used up to 5 years old. Many new cars attract support from the manufacturer, meaning low interest or in many cases, 0% options available.
- Tell us your approximate annual mileage - up to 30,000 miles per annum.
- Based on this information we will set a Guaranteed Future Value (GFV) for your car - this is the minimum amount your car will be worth at the end of the contract.
- Choose the term that suits you best - 24, 30 or 36 months. The amount financed is lower than traditional finance methods as your deposit, plus the GFV, are subtracted from the price of the car. The remaining balance is the amount financed, plus interest if applicable.
- At the end of your agreement you then have 3 simple, flexible choices:
- Part exchange and start again with another new car - any amount left over above the guaranteed value can be used as a deposit on your next vehicle
- Hand the car back in with no further payment to make, assuming it is within the agreed mileage and is in a 'fair wear and tear' condition
- Make the final payment and keep the car for longer - we are also able to re-finance your final payment if required
Would it suit me?
- Low or nil deposit
- Fixed interest rates
- Reduced monthly payments compared to traditional finance methods
- Mileage up to 30k per annum
- Like to change car every 3 years or less
Hire Purchase (HP)
"The traditional way to finance your car - fixed monthly payments, up to 5 year term and low or high deposit levels. At the end of the agreement you own the car outright, assuming you have made all payments to the finance company on time."
How does it work?
- Select the car that's best for you
- Pay a deposit, usually from 10% to a maximum of 85%
- Agree a term for the balance, from 12 months to a maximum of 60 months (5 years)*
- This balance, plus interest if applicable, is the amount financed
- Make regular monthly payments and at the end of the contract, once the final payment has been made, the car is yours to keep
Would it suit me?
- Low or high deposit contribution
- Flexible terms - up to 5 years
- Longer term car retention
- Fixed interest rates
What is Business Contract Hire?
Business contract hire is a long-term lease agreement which allows a business to pay a fixed monthly rental cost for the use of a vehicle. The leasing provider will be the owner of the car while you have it, and at the end of the agreement you’ll give the car back* - meaning you won’t need to worry about depreciation or disposing of it.
Business contract hire is one of the most popular ways for VAT registered companies to drive a car, as you could claim back up to 50% of the VAT** on the cost of renting, which means you’ll save money overall. It works in a similar way to personal contract hire, but it’s exclusively for companies, and has the added VAT benefits.
*No ownership option. Return conditions and excess mileage charges apply
** Subject to VAT status and usage of the vehicle. Consult your tax advisor if unsure how this applies to your business.
WHAT ARE THE BENEFITS OF BUSINESS CONTRACT HIRE?
One of the main benefits of business contract hire is that VAT registered companies could claim back up to 50% of the VAT, making it an affordable, cost-effective way of driving a company car.
We know that budget planning has an important part to play in any business, and the fixed monthly rentals help to make this easier. We even offer an extra option to include maintenance costs at the start of the contract - this means you’ll be able to spread the cost of maintaining your company cars across the year and if you do run into any problems you can be sure that you’ll be back on the road as quickly as possible.
Also, the fact that you give the car back to us at the end of the agreement means that you can go straight into another car leasing contract subject to status and a new credit application to get the latest car, so your fleet will be up to date with the most recent model.
Contract hire agreements are flexible, so you can choose a plan which suits you and your business - with options on different agreement lengths as well as flexible upfront costs and mileage limits.
HOW MUCH ARE MONTHLY RENTALS?
The amount you pay each month for your business contract hire can vary depending on the options you choose for your business. Your rentals are calculated based on:
- The cost of the model and grade which you decide to go for
- The duration of the contract: our contracts can be between 24 and 60 months in length
- The amount of the initial rental you decide to pay up front (equivalent of between 1 to 12 months normal monthly rental)
- Your annual mileage allowance, which you can choose at the start of your contract (minimum 5,000 to maximum 25,000)
- Whether you decide to go with our maintenance option***. This covers costs of routine servicing, tyres, replacement parts and repairs due to wear and tear
***Business Contract Hire (or Contract Hire) is available to business users only, subject to status and credit application. Contract Hire is provided by Lex Autolease Limited trading as Suzuki Contract Hire, Heathside Park, Heathside Park Road, Stockport SK3 0RB. No ownership option, return conditions and excess mileage charges apply
WHAT HAPPENS AT THE END OF THE CONTRACT?
At the end of your contract, you’ll return the car to us. You’re then free to start another business contract with us for one of the latest models. If you’ve gone over the agreed total contracted mileage, then an extra charge is worked out on a pence per mile basis - this will be outlined to you at the start of your agreement.
There can sometimes also be charges if there is damage to the vehicle which falls outside of ‘fair wear and tear’ in accordance with the British Vehicle Rental and Leasing Association guide.
Car finance: here to help you
Do you have historic credit issues and are concerned that you may not be able to get car finance? Don’t worry, we have a prearranged car finance facility that has been designed to help those who may have had poor credit in the past, to purchase a car at an affordable monthly rate. We have access to a wide range of lenders who can tailor a finance offer to try and suit your individual needs. Our provider is Mann Island, 5 St Paul's Square, Liverpool L3 9SJ telephone: 0370 600 6668. They offer numerous finance products but especially have PCP products for used cars, helping to make cars more affordable.
How do we do this?
We discuss how much you can afford every month with us and understand your credit history. This information is then passed to a number of lenders who match your needs to their criteria. You will then be informed when suitable lender makes an offer.
What benefits does this offer?
The service means that you may not have to make several credit applications which may affect your credit rating further. It may save you time trying to find an offer which you can afford. The service is free with no obligation quotes.
What exclusions are there?
However, the service may not be able to find an offer which is suitable for your circumstances and it may be that an offer made may have a longer duration than your preferred choice.
Can anyone apply?
If you are over the age of 18 years, with a full UK driving licence, who has been resident in the UK for 3 years and is employed or self-employed can apply. All finance is subject to terms and conditions and eligibility criteria, the rate you receive will be individual to your circumstances. Please contact us for more information.
Where can I find out more?