Finance Plans at Motorvogue
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Latest News: Hinwil, 20th February 2018 – The Alfa Romeo Sauber F1 Team has launched its new challenger, the C37, ahead of the 2018 Formula 1 championship. The C37 looks different to last year’s C36 – on one hand, this is due to the new technical regulations, and on the other hand, because of the team’s new technical approach. As the 2018 season is about to kick off, Frédéric Vasseur, Team Principal, says: “I am very much looking forward to the 2018 season, and to seeing Marcus (Ericsson) and Charles (Leclerc) on track. We have put lots of effort and hard work into the C37 over the last few months, and it is fantastic to be launching the new car today. I am convinced that Marcus and Charles form the perfect driver line-up, with one being an experienced driver and one a promising rookie. Marcus is going into his fourth season with us. He is a valuable part of the team, and we benefit from his experience and precise technical feedback. As for Charles, he has proven his talent in prior categories and deserves to be on the Formula 1 grid this season.” “Our target ahead of 2018 is clear: We have to catch up with the field and continue improving our performance during the course of the season. We have put lots of energy and commitment into the development of the C37. I want to thank our partners and fans for their continuous support. The return of Alfa Romeo to Formula 1 sets another milestone in the team’s history, and I am proud that such a historical brand has chosen us for their return to the sport. We are eager to start the 2018 season as the Alfa Romeo Sauber F1 Team,” Vasseur continues. Alfa Romeo's comeback restores one of the great names that have gone down in the history of motorsport's premium championship, Formula 1, and marks the return of the “Quadrifoglio”, the legendary badge that has appeared on Alfa Romeo's top performance cars since 1923, to the circuits. Featured on the engine cover of the new C37, the famous good-luck charm has a fascinating history, deeply rooted in the racing world. The first Alfa Romeo car to carry the Quadrifoglio was the “RL” driven by Ugo Sivocci which won the 15th edition of the Targa Florio in 1923. The same good-luck emblem also appeared on Brilli Peri's “P2” when he triumphed in the first "Motor Racing World Championship" in Monza in 1925, gaining the first of Alfa Romeo's five World Titles, and it was present again in 1950 and 1951, when Giuseppe “Nino” Farina and Juan Manuel Fangio drove the Alfa Romeo 158 and 159 cars, the famous “Alfettas”, to success in the first two Formula 1 World Championships. Today, the legendary symbol returns to the highest level of motor racing to show the whole world the continuing strength and success of the Alfa Romeo philosophy, a constant search for excellence applied to racing, then transferred in its entirety to the brand's production cars. The legend continues. Jörg Zander, Technical Director, explains: “It is great to finally reveal the C37 today. The 2018 challenger is the result of the hard work that everyone in the factory has put in over the last few months. Speaking about the C37, the car philosophy is much different to that of the C36. The aerodynamic concept has changed significantly, and the C37 has several new features in comparison to its predecessor. We are positive that the new concept offers us more opportunities and will help us to make improvements during the course of the season. The 2018 Ferrari engine will also give us a boost in terms of our performance. We hope that we will make progress with the C37 and that we are more competitive compared to 2017.” The official rollout of the C37 will take place on the occasion of the first winter tests at the Circuit de Catalunya near Barcelona from the 26th of February to the 1st of March 2018.

Finance Plans Explained at Motorvogue

From PCP to hire purchase, here's everything you need to know about financing your next car. 

Car finance might seem daunting, but in reality it's just a simple two-stage process.

The first stage is to decide on the type of car deal you want: loan, lease, hire purchase, or dealer finance. Then it's a simple matter of choosing the provider whose product best suits your needs.

Personal Contract Hire (PCH)

The word 'Hire' tells you what PCH is all about. Basically you're renting a car for (typically) two or three years, with an agreed mileage limit of (typically) 10,000 miles a year. There's no option to buy the car at the end of the contract; you just hand the keys back to the finance provider. In effect, your payments are only covering the car's depreciation.

While you're running it, you're responsible for the car's upkeep. On the plus side, the deposit is low (three or six months' rental is common), as are the fixed monthly repayments, and you can blunt the impact of repair bills by incorporating a maintenance element into the agreement. Check that a separate manufacturer servicing package won't be cheaper before you tick that box, however.

Cars that hold their value well are a good PCH option, because the difference in their new and three-year-old values will be smaller, so you'll repay a lower amount. Cars that plummet in value from new are a bad choice, because you'll repay a much larger amount.

Just as with PCP, you'll need to make sure the car is in good condition when you hand it back, or you could face additional fees as the finance firm cleans it up.

Go for PCH if you say yes to one or more of these statements:

You don't want to own a car, or suffer its depreciation
You like being able to change cars frequently
You like the idea of driving better cars than you could normally afford
You don't mind looking after cars

Personal Contract Purchase (PCP)

It's a bit like HP in that there's a deposit to pay, a fixed interest rate, and monthly repayments over a choice of lending terms, which are usually between 12 and 36 months.

Where PCP differs from HP is at the end of the term. Then you'll have three choices. You can:

  • Return the car to the supplier
  • Keep the car
  • Trade the car in against a replacement

The first option, returning the car, costs nothing, unless you've gone over an agreed mileage or failed to return it in good condition. In either case there'll be an excess to pay.

Keeping the car means making a final 'balloon' payment. This amount is the car's guaranteed future value, or GFV, which is set at the start of the agreement.

The GFV is based on various factors, including the length of the loan and the anticipated mileage as well as the car's projected retail value. If you exercise this final buying option, you can of course keep running the car, or you can sell it, pocketing any equity above the GFV that you've paid back to the lease company.

If you're trading the car in, any GFV equity can be used as a deposit towards the next one.

Just bear in mind that the GFV doesn't always contain a huge amount of equity at the end of the term - so when you're working out monthly costs, it's probably wise to factor in a few extra pounds per month that you can put away in preparation for the next deposit at the end of two or three years.

If the car has gone into negative equity – which can happen – you'll have to find all of that deposit if you want a further PCP. Shorter leases are more likely to come with more accurate GFVs and manufacturers are quite proactive in trying to get you out of a car early if they think there's scope to get you into a new one on a decent monthly rate; it's not uncommon dealers to call customers on three-year deals about a year early - because doing a new PCP keeps the buyer tied to that manufacturer for a further period of time.

Go for PCP if you say yes to one or more of these statements:

  • You want lower monthly repayments
  • You like the flexibility of options at the end of the agreement
  • You can confidently and accurately nominate your mileage

Hire Purchase

Under HP agreements, there's a deposit to pay – typically 10% – followed by fixed monthly payments. The car is owned by the HP company until the final payment – and any 'option to purchase' ownership-transfer fee – has been paid. Up to that point, the person making the payments has no legal right to sell the vehicle.

Nevertheless, some 'owners' do sell 'their' cars before the final payment. The good news for buyers of these 'non-paid-up' HP cars is that the law clearly protects private purchasers who buy without notice of any undischarged HP agreement.

No matter what the police or anyone else might tell you, you'll get a good title to the car if you buy an HP car under these circumstances. The finance company can take action against the seller if they wish, but it's not your problem.

The credit on an HP agreement is secured against the car, so it's like dealer finance in that the only the car can be seized in the event of a default. If you need to sell the car before the end of the agreement, you'll have to repay the outstanding debt first – and 'early settlement' fees may apply.

Go for HP if you say yes to one or more of these statements:

  • Eventual ownership is important to you
  • Your budget and circumstances suit fixed monthly repayments
  • Your disposable income is likely to decrease over the agreement term (eg if you're planning a family)
  • You like low-risk credit secured against the car only
  • You don't mind not owning the car until the debt is fully repaid
Motorvogue Bedford

Interchange Park, Bedford, MK42 7GB

TEL: 01234 867788

    


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Motorvogue Kings Lynn

Scania Way, Hardwick Industrial Est, King's Lynn, Norfolk, PE30 4LP

TEL: 01553 772644

    


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CONSUMER CREDIT & GENERAL INSURANCE
Motorvogue (Northampton)Ltd is an Appointed Representative of Automotive Compliance Ltd, which is authorised and regulated by the Financial Conduct Authority (FCA No 497010). Automotive Compliance Ltd’s permissions as a Principal Firm allows Motorvogue (Northampton)Ltd to act as a credit broker, not as lender, for the introduction to a limited number of finance providers and to act as an agent on behalf of the insurer for insurance mediation activities only.