Finance Plans at Motorvogue
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Latest News: No-nonsense car brand Dacia is continuing its range of great value finance offers this summer. A free five year extended warranty is standard on all new Dacias (excluding Access versions) purchased through the RCI Dacia Dimensions Scheme, on a four year PCP or HP deal.The offer spans the full, recently updated range of award-winning Dacia models, ensuring drivers can own a brand new hatchback, estate, compact crossover or SUV for a lot less than they may have thought. The offers applies to orders placed before the 30th September 2017 for cars registered until the 31st December 2017. The free five year warranty, usually worth up to £395 as an upgrade, replaces the standard three year warranty. Attracting a deposit contribution of £1000 for diesel versions and £500 for petrol models, the rugged and award-winning Duster, refreshed for 2017, is a highly tempting proposition to savvy SUV buyers. Purchased though a four-year Dacia Dimensions PCP package, the Duster in Ambiance 1.6 16V 115 specification is available from only £149 per month once customers have put down a deposit of £1,780 and also comes with the free five year extended warranty. Recently announced as one of the UK’s most affordable cars to own and run, and What Car? magazine’s ‘Best Small Car for less than £12,000’ for the fifth consecutive year in 2017, the neatly-packaged Sandero is now even more accessible. Via the four-year Dacia Dimensions PCP deal on the Ambiance SCe 75 model, the practical five-door hatchback can be purchased for as little as £89 per month with a customer deposit of £1,485 with the free five year extended warranty. Drivers that want a small crossover will want to check out the latest Sandero Stepway offers. Available with a £600 deposit contribution for diesel versions when bought on a four-year Dacia Dimensions PCP deal and £400 on petrol versions, the popular crossover costs from only £99 per month with a deposit of £2,370 for the Ambiance TCe 90 version with a free five year extended warranty. Equally big on space as it is on value, the Logan MCV comes with a £400 deposit contribution when purchased on a four-year Dacia Dimensions PCP deal. With a £2,078 deposit, customers can experience the model’s versatility and spacious interior from only £99 per month with a free five year warranty. Dacia has sold more than 100,000 vehicles in the UK since it was launched here in 2013 with more than 4.5 million Dacias sold since the brand was relaunched by Groupe Renault in Europe in 2004. For more information about Dacia’s model range, current offers and full terms and conditions, please contact us. 

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
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Interchange Park, Bedford, MK42 7GB

TEL: 01234 867788

    


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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.