We have a great selection of straightforward pay monthly finance plans for all new & approved used Vehicles sold by Inchcape. Our customers choose Inchcape for their car finance because we can offer the following:
Many manufacturers have their own finance packages, but providing you wish to do anything other than buy it outright in a cash purchase, the majority are variations of the following schemes. With the help of the information below, you'll soon know which is the right type of finance for you.
Personal Contract Purchase is a highly attractive and very popular way to own a new, nearly new or used car. It combines fixed monthly payments with exceptional flexibility at the end of the agreement.
Your car's Guaranteed Future Value is calculated (based on a pre-agreed mileage per year and the age of the car) and is deferred as a final payment.
You have total control in deciding which of these choices suits you best.
Hire Purchase is perhaps the most traditional of funding methods. The monthly payments are determined by the amount of deposit initially paid, the period of the contract and the overall price of the vehicle.
A typical hire purchase option will consist of paying a low deposit amount (maybe 10% of the vehicle price), have no mileage restrictions and entitle you the customer to eventual ownership of the vehicle.
Essentially, the Hire Purchase funding option is best suited to those customers who want simplicity.
Once all the payments due under the agreement have been made the title passes to you and you are free to keep or dispose of the vehicle as you see fit. Should your circumstances change you are able to settle the agreement early [create a blog with more info on this], and your finance company will be happy to provide a figure for this at any time.
This payment plan, normally more suited to Business Users (but becoming more common for personal users via 'PCH') effectively allows you to 'hire' vehicles as opposed to owning them.
The amount you pay per month effectively covers the drop in your car's residual value. This amount is calculated working on the value of the car at the end of the lease and you pay the difference. It's common to pay three months up front as an initial deposit, which means the initial outlay isn't too big.
If you are a VAT registered business a proportion of the rentals may be tax deductible. Contract hire is classified as an operating lease for current taxation purposes, therefore it is regarded differently to 'purchase' contracts so you may benefit from certain tax advantages. Your financial or tax advisor should be able to advise you if this applies.
A PCH agreement can run over one, two, three or four years. Once this comes to an end, the customer simply returns the vehicle.
A Finance Lease is a tax efficient and flexible way of purchasing a car. As with PCH/Contract Hire this way of funding is more suited to a business customer. The flexibility comes from the ability to choose between two options:
Option 1: You can spread the total cost of the vehicle, which includes interest charges over a certain period leaving no further money to be paid
Option 2: Offset an amount to the end of the term with the result being that you would benefit from lower monthly repayments. The final deferred rental would be based on the anticipated, projected resale value of the vehicle.
In terms of businesses, while the ownership of the vehicle remains with the leasing company for the period of the contract, the vehicle does actually appear on the company's balance sheet. As with Contract Hire a proportion of the rentals paid can be offset against taxable profits.
The responsibility for selling the vehicle at the end of its contract term lies with the customer. This means that there could be a profit depending upon the amount of finance still outstanding.