Options When Financing a New or Used Car

Over the years Brindley Garages Group have helped many customers in the West Midlands buy the car of their choice with cost effective finance. The finance specialists and sales teams at all of our dealerships use the latest technologies designed to ensure a quick and pleasant experience, from getting initial financial approval through to completing all of the paperwork and handing over your new vehicle. Furthermore, you can rest assured that using Motor Dealer Finance provides additional Consumer Rights that you may not have when using either your own bank or your savings.

Financing a New or Used Car

Brindley Finance Products

Brindley Garages Group offer a range of Finance Products which are designed to offer agility and bespoke options that can be tailored to suit individual needs. The main advantage of these products is that if your circumstances change it is often easier to opt out, extent or change the agreement, or even the vehicle itself for a different type. The various finance options available to both private and business motorists include; Personal Contract Purchase (PCP), Hire Purchase (HP) and Personal Contract Hire (PCH) and we will explain each one in detail below.

Personal Contract Purchase - PCP

Personal Contract Purchase is available on all new and the majority of approved used cars and this option has two characteristics that make it different from the other two finance options.

Guaranteed Future Value - GFV

Firstly, a Guaranteed Future Value (GFV) of your chosen vehicle is calculated by the finance company based on your anticipated total mileage over the duration of the contract. The GFV is then deducted from the purchase price and deferred to the end of the agreement when it is then offered as an ownership final payment. The monthly payments of the PCP are then calculated on the difference between the ‘on the road’ purchase price less your deposit and the GFV.

For example, if the purchase price of the car is £20,000 and you put down a £5,000 deposit, either by cash or trade-in allowance, and the GFV is calculated to be £5,000 then your monthly PCP payments will be based on a contract value of £10,000. These payments will always be lower than any other form of purchase agreement over the same term.

The second unique characteristic is what happens at the end of the PCP agreement and there are three choices available:

  1. Retain the Car - By paying the GFV final payment to the finance company
  2. Return the Car - Subject to mileage and condition clauses, you may hand the vehicle back to the finance company with no further commitment
  3. Trade-in the Car - The GFV final payment will be deducted from the part-exchange valuation and any amount above can be used towards the deposit against your next new car

Hire Purchase - HP

Hire Purchase is available on all new and used cars and this flexible plan allows you to spread the cost of buying your car over a period of your choice, usually from 2 to 5 years. A deposit is normally required and subject to status our lenders will advance the remaining purchase price of your car. At the end of the agreement, assuming all repayments have been made, the car is yours on payment of a £10 Option to Purchase Fee. HP agreements are flexible and offer the option to make a full or partial settlement at any point during the agreement.

Personal Contract Hire - PCH

Personal Contract Hire is available on new cars and is a long-term rental plan where the car remains in the ownership of the leasing company who therefore bear any depreciation costs. You pay fixed monthly payments for an agreed period based on your anticipated total mileage over the duration.

At the end of the agreement, subject to mileage and condition clauses, the car is returned to the leasing company without any further obligation. The cost of PCH agreements usually includes the vehicles annual road fund licence, and the option of adding all servicing and maintenance costs can also be included.

Contact Brindley

All Brindley showroom teams in the West Midlands are fully trained, ready and waiting to help you to finance your purchase through any of our competitive finance packages, so for more information or to arrange a test drive simply contact your nearest Brindley Dealership today.

Added: 10 May 2018

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