The end of August often sees an increase in demand for new car finance, but many get overwhelmed with the choice’s available. The following is our list of top options:
Hire Purchase (HP)
A hire purchase agreement allows you to make a small deposit followed by regular monthly payments for a set term. Key advantages include:
- Very quick and easy to arrange (typically this will be offered by a car dealership)
- Low deposit generally around 5% of the total cost
- Flexible repayment terms are available (typically between 12 to 60 months)
- Interest rates are fixed and very competitive
Personal Contract Purchase (PCP)
A similar offering to HP, but on this occasion you will have lower monthly payments but a larger payment to settle at the end of the agreement (known as a balloon payment). In essence the value of the loan is calculated on the difference between the cost of the brand-new car and its predicted value at the end of the loan agreement. Advantages for this solution are:
- Generally lower monthly payments compared to a personal loan or HP
- Little to no deposit required
- Flexible repayment terms
- Range of options to select at the end of the loan term (e.g. re-finance the outstanding amount or trade-in the car for a new model with a new PCP contract)
Leasing on Personal Contract Hire (PCH)
In essence you rent a brand new car over a set period of time and included within your monthly cost will be servicing and maintenance. You will have a set number of miles per annum and at the end of the agreement you hand the car back and either take a new agreement or looking for alternative options. Advantages for PCH are:
- You get a fixed monthly cost for your new car, which includes all servicing and maintenance needs
- You don’t need to worry about the car depreciating in value
- Flexible contracts are available (typically between 12 and 60 months)
The NGI team has vast experience in arranging loan agreements for both personal and company cars. The benefit of coming to us is we can use a whole of market approach to find the very best deal available to suit your specific needs. Why not explore one of our Case Studies where we have helped a Partner with Roys Withy King to finance a Range Rover.
Remember, it does not just have to be a car, we can finance other vehicles. Most recently we have helped finance vans for a scaffolding firm, transit vans for a team of removals and refrigerated vehicles.
For additional information please call the team on 01993 706 403, they will be delighted to help.