H.P (Hire Purchase)
H.P is a simple straight forward way of funding your next asset. Finance terms are usually 24 months to 60 months, however there are commercial lenders we have that will go longer, up to 84 months/7 years. Leisure finance which covers caravans and motorhomes 120 months/10 years is also available (subject to age of asset at the end of the agreement).
There is no big final payment on a hire purchase agreement only an option to purchase fee. This is when the title of the asset is then passed/transferred into your name.
Deposits on H.P can be from small to large depending on your budget and what you want to achieve. We will talk through your options and find out exactly what you want to do and tailor a finance package that you are happy with.
Lease Purchase (L.P / Hire Purchase + Balloon)
There is another option with Hire Purchase which a Lease Purchase / Hire Purchase with balloon. This is where there is a sum of money off set until the end of the agreement, which will help to reduce the term (to a maximum of 48 months.)
P.C.P (Personal Contract Purchase)
This solution can potentially help you purchase a newer car for less over HP. However, there are a couple of things to consider. There is a milage stipulation and a maximum deposit, usually 30%.
How this works is based on the car you have chosen and the miles per year that you anticipate you are going to do. This will produce a guaranteed minimum future value, (Also known as GFV/GFMV) which is set by the lender. Traditionally with dealers there are 3 options at the end of the agreement but 4 with us.
The options are:
- Option to purchase – you love it so much you want to keep it!
- Option to part exchange – upgrade, anything over and above the future value you keep the difference or add it to the new purchase as a deposit.
- Hand back – its not worth the GFMV that the bank has said (Subject to return conditions, milage, condition of car)
- Re-finance the GFMV and keep it.
We will find out what you are purchasing and advise what is available to you, its your choice what you do!
Re-Finance / Equity Release
Re-finance. Do you have a car already on finance or another asset that you want to look to reduce your costs on? Are you paying too much interest on the current car or are you at the end of a PCP? Are you looking to fund the final payment/GFMV and keep the car? This is a simple solution to raise money or reduce costs.
Equity release. Got a vehicle or an asset that is paid for but want to release equity to fund something else? This is possible for both private and businesses.
This can be used as a different way to raise funds in business or to purchase other assets, by having an unencumbered asset re-financed. This will then give you the opportunity to fund the new asset you require.