When it comes to purchasing a new or used car, being able to finance such an investment is often the primary concern for motorists. This is more than understandable, since you will often be parting with many thousands of pounds in order to drive a vehicle off the forecourt. However, to help make things more affordable and manageable, we at Thame Cars are delighted to be able to provide you with a selection of vehicle financing solutions, meaning you will not have to part with a huge payment in one go. Instead, you will simply pay a deposit followed by fixed monthly repayments.
The current vehicle financing options available through Thame Cars are Personal Contract Purchase and Hire Purchase.
Personal Contract Purchase - or PCP - requires you to select your vehicle and agree both your annual mileage and length of agreement term with a member of our team. We’ll then calculate the Guaranteed Minimum Future Value of the vehicle at the end of the agreement and determine a deposit and payment plan that suits you. At the end of the contracted term, you will have the option of returning the vehicle to us, trade it in for another car/agreement, or pay the optional final payment to make the vehicle your own.
The benefits of choosing PCP include the opportunity to benefit from lower monthly repayments and having the opportunity to simply return the vehicle and walk away at the end of the term. As such, you will be free to then find your next vehicle under a similar agreement, meaning you can enjoy driving the latest models every few years.
When you have chosen your vehicle, you will then agree your annual mileage and decide on the agreement term with one of our Business Managers.
We will then determine the Guaranteed Minimum Future Value (GMFV) of the vehicle at the end of the agreement and work out a deposit and monthly amount that works for you.
At the end of your agreement you will then have three options:
Return – Simply return the car the back to us
Retain – Keep the car by paying the optional final payment
Renew – Trade it in for another car
For a quotation, help, or advice contact us and ask to speak to one of our Business Managers.
You can normally settle your agreement early by asking the finance company to provide you with a settlement figure. However, the finance company will require you to pay off the difference between what your car is worth, and what you still owe and there may be a difference which is known as negative equity. On the other hand, you may find that at the end of your term your car is worth more than the Guaranteed Future Value, which means you will have some positive equity to contribute towards your next car.
A Hire Purchase agreement differs from PCP in that at the end of the contracted term, you will be the outright owner of your vehicle. Like PCP, however, you are able to pay a deposit followed by fixed monthly repayments. These repayments will cover the overall cost of the vehicle so that, at the end, there is nothing more to pay.
To learn more about financing any of the vehicles in stock with Thame Motors, get in touch with a member of our sales team today. We’ll be happy to help.
The short answer is yes, you can end your finance early. There are different provisions within each finance agreement that allows you to do just that. If you have got through two-thirds of the way through your finance agreement, the options to end the finance agreement early open up.
For a Hire Purchase agreement, there is an option of paying it off early through a settlement fee. A settlement fee covers the cost of any remaining unpaid instalments and interest payments remaining on the agreement. Once the settlement fee is paid, you take full ownership of the car early.
Under a Personal Contract Purchase agreement, you can also pay a settlement fee for bringing the agreement to an end early. After that, you can choose to hand the car back or you have a second option. Through a PCP agreement, you can take full ownership of the car by paying off the remaining Guaranteed Minimum Future Value also known as a balloon payment.