PURCHASE OPTIONS

Buying a car is a big decision. For many, it’s one of the largest purchases they will ever make. So, whether brand new or new to you, it’s important to choose the right funding options.

and our partner finance companies will tailor a competitive offer based on your personal requirements. Why not call into one of our dealerships, or e-mail us to make an appointment to find the right option for you.

CASH

The main benefit of paying cash for your next purchase is that you do not incur interest charges as you would with most other source of loans, with the exception of 0% finance. The main disadvantage with a cash purchase is the loss of a future funding source for any unforeseen expenditure and the loss of interest that would have accrued on that balance if it had not been withdrawn. However, in today’s market with such competitive interest rates, the interest paid on a loan could be similar to the interest lost on a withdrawal of funds. Perhaps the biggest disadvantage to the cash purchase is the lack of guarantee on what the future value of your vehicle may be. You are exposed to the vagaries of the market place. Remember the real cost of a vehicle is “what you pay less what you get”. With a cash purchase you have no guarantee on “what you get” you take the risk.

STANDARD LOAN

A standard loan agreement is similar to hire purchase and provides finance at a fixed rate of interest. After paying the necessary deposit you simply repay the balance in equal amounts throughout the agreement period, which can be up to a maximum of 60 months.

At the end of the agreement you will become the owner of the car. You do not need to have a bank account but you must be aged 18 or over with a regular income.

EXAMPLE

BENEFITS

• The length and the amount of payment can be decided on between you and the lender
• Quick and simple to arrange at point of sale, leaving bank savings untouched for emergencies and/or future opportunities
• You become owner of the vehicle when the final repayment is made

PERSONAL CONTRACT PURCHASE (PCP)

Our personal contract purchase plan gives you all the benefits of driving a better, newer car for a competitive monthly payment. You also have the freedom to choose whether to own, part exchange or simply return the car at the end of your agreement, with nothing more to pay.

BENEFITS

• No resale risk. You have a minimum future value guaranteed by the Manufacturer at point of sale.
• Use of a newer car with the option to own
• Opportunity to change your car more often
• Short term agreement – 24 to 36 months
• Reduce maintenance and repair – change the car before MOT’s, tyres need attention
• Total flexibility to:
  1. Part Exchange / Profit Option
     Whatever your car is worth above the minimum future value is your profit. Use it towards a deposit on your next car.
  2. What if / Security Option
     If for some reason beyond control the car value is less than the guaranteed value you can return it with nothing left to pay, subject to mileage and condition.
  3. Love it / Keep it Option
     Simply pay the minimum guaranteed value that you did not pay at point of sale. Pay cash or refinance that balance.

EXAMPLE

HIRE PURCHASE & LEASE PURCHASE

Hire purchase, also sometimes known as lease purchase, is a popular choice that gives you ultimate ownership of the vehicle through payment by regular installments. Payments can be structured to fit with your cash flow needs. For example, regular payments can be reduced by including a final lump sum payment (sometimes known as a 'balloon' payment) which reflects the assumed value of the asset at the end of the agreement. Your business can claim the available capital allowances and offset the interest charges against trading profit.

FINANCIAL SERVICES AUTHORITY AUTHORISATION

Carco Group is authorised and regulated by the Financial Services Authority (FSA).

All figures shown are typical examples only. As interest rates will fluctuate, you should consult who can provide an accurate written quotation.

For more information, please contact us.