UK Finance Products

Various UK finance products are available for individuals and businesses. These products can be tailored to suit your needs.

Hire Purchase /Conditional Sale
Personal Contract Purpose (PCP)
Lease Purchase
FinanceLease
Contract Hire
Personal Contract Hire
Payment Protection Insurance

Click on a UK finance product link for more information.

HIRE PURCHASE / CONDITIONAL SALE

For businesses or individuals that want ownership of the vehicle. This agreement allows for ownership of the vehicle on completion of all payments, including an option to purchase fee.

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PERSONAL CONTRACT PURCHASE (PCP)

Essentially this is a conditional sale agreement that defers a percentage of the purchase price till the end. (Normally referred to as a balloon payment or Guaranteed Future Value.) This can help reduce the monthly payments. The final payment is subject to strict mileage limitations which can be negotiated at the beginning of the agreement. At the end of the agreement you can either:-

Hand the car back
Pay the balloon payment and take ownership
Use the equity in the vehicle as a deposit for your next purchase.

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LEASE PURCHASE

Like H.P/Contract Hire, this agreement is for the business or individual to take ownership of the vehicle. It also has the facility to include a balloon payment (this is not a guaranteed future value) but there is no option to return the vehicle at the end.

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FINANCE LEASE

Finance Lease is a vat free method of financing a vehicle. The monthly rental is determined by the cost of the vehicle, the period and the estimated future value of the vehicle which is based on the proposed annual mileage. A payment equivalent to the estimated future value is payable at the end of the contract. At the end of the contract period, the vehicle is sold and the proceeds returned to the Lessee. Maintenance packages are often available, if required.

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CONTRACT HIRE

Contract Hire is the leasing of a vehicle, normally to a vat registered business or company, for a set time and mileage at a fixed monthly rental. The monthly rental is determined by the cost of the vehicle, the period and mileage covered as well as the resultant depreciation. Maintenance packages are often included within Contract Hire agreements, but are not obligatory.

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PERSONAL CONTRACT HIRE

Personal Contract Hire, as its name suggests, is essentially the same as Contract Hire but for private individuals. If you want fixed cost motoring, or have opted out of a company car scheme then Personal Contract Hire could provide you with hassle free motoring without the residual value risks associated with traditional ownership.

VAT is built into the monthly payments, but is not reclaimable by private individuals. Maintenance packages are usually available so that you don't get any nasty surprises.

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PAYMENT PROTECTION INSURANCE

Payment protection insurance provides you with peace of mind that your loan or mortgage payments will be taken care of when you become ill or unemployed. Make sure you understand the conditions applying to this cover to ensure that it meets your requirements. More...

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