National Auto Sales have teamed up with several major finance suppliers who can offer you any of the following finance types for your new car should you require it.
Hire Purchase
Hire Purchase (HP) is a well-established method of financing the purchase of assets by businesses. Under a HP agreement the customer will pay an initial deposit, with the remainder of the balance and interest paid over a period of time. The finance company which provides finance is known as the "creditor". It will purchase the asset on behalf of the customer, who is known as the "hirer" The finance company owns the asset until the final installment is paid for the asset.
Contract Hire / Leasing / Personal Leasing
Leasing is a contract between the leasing company, and the customer.
- The leasing company buys and owns the asset that the lessee requires
- The customer hires the asset from the leasing company and pays rental over a pre-determined period for the use of the asset.
- The leasing company can sometimes claim capital allowances on the assets. These benefits are usually passed onto the lessee in the form of reduced repayments.
Personal Contract Purchase
PCPs normally operate for two years; at the beginning of the period the customer will pay a deposit and have set monthly repayments. At the end of the contract there are three options facing the customer:-
- Start the process all over again by going back to the dealer, trading in the car and paying off the Minimum Guaranteed Future Value [MGFV] to the finance company. Any surplus can then be put towards the deposit on a new car. Alternatively, the car can be sold privately, keeping any surplus in excess of the MGFV.
- Return the car and walk away. If the market conditions have changed and the car is worth less than the MGFV, the lender will absorb any loss. Provided the vehicle is in good condition for its age and does not exceed the agreed mileage.
- Keep the car by paying off the MGFV. Even if the vehicle is worth more, the customer only has to find the agreed Minimum Guaranteed Future Value set at the outset of your finance plan.
Both new and used vehicles can be purchased on a PCP plan.
Lease Purchase
A lease purchase is essentially the same as HP; the main difference is in the terms and structure of repayments. Some finance companies differentiate Lease Purchase from Hire Purchase by using it where the customer wishes to defer payment of a substantial part of the asset cost until the end of the agreement.
