Finance Plans at Motorvogue
Read More 

Latest News: Our Service and Sales Departments remain open until 31 March. The opening hours have changed and how we conduct business, but we are still here to help. Like all businesses, we have been closely monitoring the impact that COVID-19 is having on our business, our colleagues and customers. We are very much respectful of the latest Government message that we all need to play our part to protect the most vulnerable and ensure that the NHS has the ability to care for the increased number of patients. Motorvogue have therefore decided to operate with minimal staff until the 31 March to enable our customers to have the essential safety works completed on their vehicles through our service department, including servicing, MOTs and repairs. It is more important than ever that we can support and assist Key workers in achieving their roles, and we sincerely thank our colleagues who are working with us to remain open to do so. Our Sales showrooms are no longer open to the public, however customers who have recently purchased a car will be able to collect these on an arranged appointment, when we will ensure that no other visitors will be with us at the same time. All of our Used cars can be seen on our website as well as our New car offers, and we will be available on the telephone or via our website contact form for further details on our vehicles and availability. Once safe to do so, we will once again offer our Test Drive at Your Home service and the option to have a purchased vehicle delivered to you for £99 within 150 miles, and nationwide for £199. Over the coming week, the Motorvogue Team will work together to care for our customers and look after each others well-being. This is a situation that we have not had to deal with before; we are in uncharted territory and will be learning and changing as the situation evolves. We will close on the 1st April and will communicate our future decisions as we adapt to the situation. As a minimum we are hoping to offer breakdown support to vehicles which are recovered even after this date, with secure parking for their vehicle and the loan of a car to keep our customers mobile until such time as their vehicle can be repaired. Contact telephone numbers will be made available as we move to an Emergency Support service for owners of all of the brands we represent, and as advice begins to be more positive we will once again be taking Aftersales Bookings for maintenance, service and MOTs. Please check our website and social media channels for future developments. In the meantime, please take care and we look forward to seeing you again in the near future.

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,
Bedfordshire,
MK42 7GB
Fiat Abarth Alfa Romeo Jeep SEAT Hyandai Renault Dacia
MOTORVOGUE
NORTHAMPTON
74 Kingsthorpe Road,
Northampton,
Northamptonshire,
NN2 6HE
Fiat Abarth Alfa Romeo SEAT Cupra
MOTORVOGUE
KING'S LYNN
Scania Way, Hardwick Industrial Est,
King's Lynn,
Norfolk,
PE30 4LP
Fiat Abarth Alfa Romeo Jeep Renault Dacia
MOTORVOGUE
NORWICH
Cromer Rd,
Norwich,
Norfolk,
NR6 6NB
Fiat Abarth Alfa Romeo Jeep Fiat Professional Hyandai

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 a lender, for the introduction to a limited number of finance providers and to act as an agent on behalf of the insurer for insurance distribution activities only.

We have placed cookies on your device to help make this website better.  Click Here to view our privacy policy and change your cookie settings.  Otherwise, we’ll assume you’re OK to continue.