We work together with some of the UK’s leading funding institutions to create a solution that suits your budget and needs, maximising your spending potential while minimising your repayments.
Hire purchase is a simple, straightforward way to allow you to spread the cost of buying your new car. The balance of the loan is paid in regular instalments of interest and principal over a period of months and full ownership will pass over to you at the end of the period. Hire Purchase is similar to borrowing an amount of money from a bank and paying it back over a fixed length of time with interest. Hire Purchase is often preferred over alternative (unsecured) loans because they allow a greater borrowing limit. The term “secured loan” means exactly that, a loan that the lender can secure against an asset (in this case, the vehicle).
A Balloon Payment can often be built into the agreement to bring down the monthly payments by deferring an amount of the borrowing to the end of the agreement. Balloon loans are ideal if you want to lower your monthly payments; freeing up capital that was dedicated to paying down higher interest rates and making larger payments, balloon loans gives you the opportunity to use that capital to save money.
Variable Rate Options
Balanced Payments Plan
With a Balanced Payments plan, the interest, rather than being fixed for the term of the agreement is linked to a base rate, usually 1 month LIBOR. The monthly repayments are set at the outset for ease of budgeting based on an assumed base rate and will not change. Any adjustment required because of any changes in base rate throughout the term are made at the close of the agreement.
Day to Day Interest
With a Day to Day facility, interest is charged on the reducing capital balance. The repayments on the day to day option will change each month as the balance reduces and any changes in base rate are made immediately. As with the Balanced Payments Plan the base rate used is usually 1 month LIBOR. Please note both variable facilities are only available for either, high net worth individuals, where the vehicle is being used predominantly for business use or for limited companies. More details available on request.
A Finance Lease allows use of the vehicle whilst paying a rental rather than a repayment. This is an alternative funding method to Hire Purchase for business users, where the title remains with the lessor but still offers the practical benefits of ownership.