Your payments are spread over the agreed period, between 24 and 48 months, and at the end of the agreement you have much greater flexibility with a final ‘balloon’ payment of the residual value and a choice of four options:

• You buy the car by paying the ‘balloon’ payment, the residual value

• You can part-exchange the car for another vehicle

• Sell the car privately and pay the final ‘balloon’ payment

• Return the car with, subject to mileage and condition, nothing more to pay (subject to terms and conditions)

What to do first?

Determine your annual mileage. The estimated future value and final guaranteed ‘balloon’ payment is then calculated, together with your monthly payments. You can then decide if the PCP is best for you.

What are the benefits?

• Low risk with the minimum future value guaranteed (subject to terms and conditions)

• Low deposit keeps your valuable personal or business cash available

• Low fixed monthly payments, perfect for budgeting

• Fixed interest protects you from interest rate fluctuations

• A better car with lower payments allowing you to choose a higher specification car

• Greater flexibility at the start and end of the agreement

• Tax benefits for business users when you opt out of a company car scheme

• No VAT to pay

What about excess mileage?

At the beginning of the agreement you determine your annual mileage for the contract period. If you decide to return your car to the finance company you simply pay a fixed amount per extra mile.

What about ‘wear and tear’?

At the end of the agreement the vehicle may be worth more than the agreed residual value if it is well maintained. It is in your own interest to minimise the vehicle’s ‘wear and tear’.

Finance packages are subject to status and finance company acceptance. UK residents only.

What to do first?

You decide on the amount of the deposit and the term over which you will spread the finance.

What are the benefits?

• Lower deposit keeps your valuable personal or business cash available

• You decide the deposit and the term

• Fixed monthly payment makes budgeting simple

• Fixed interest protects you from rises in interest rates

• Asset – you gain vehicle ownership

• Flexible and doesn’t compromise your other lines of credit

• Tax allowances for business users

• No VAT to pay

Finance packages are subject to status and finance company acceptance. UK residents only.

What to do first?

Determine your annual mileage. The estimated future value and final guaranteed ‘balloon’ payment is then calculated. You agree a deposit, your term and monthly payments.

What are the benefits?

• Lower deposit keeps your valuable personal or business cash available

• Lower fixed monthly payment makes budgeting simple

• Fixed interest protects you from rises in interest rates

• A better car with lower payments than standard Hire Purchase, allowing you to choose a higher specification car

• Asset – you gain vehicle ownership

• Flexible and doesn’t compromise your other lines of credit

• Tax allowances for business users

• No VAT to pay

What about excess mileage?

There is no mileage restriction.

What about ‘wear and tear’?

At the end of the agreement the vehicle may be worth more than the agreed residual value if it is well maintained. It is in your own interest to minimise the vehicle’s ‘wear and tear’ to help its resale value.

Finance packages are subject to status and finance company acceptance. UK residents only.

Key Benefits of Contract Hire

Road Fund Tax Vehicle Excise Duty for the period of the contract is included in the contract and will be sent to you automatically

Fixed Monthly Rentals: The agreed rental remain constant throughout the contract allowing easy budgeting

No Depreciation Risk: The supplier owns the vehicle, you have no worries about depreciation and re-sale value, subject to fair wear and tear provisions.

VAT Reclaimable: 100% of the VAT is reclaimable on commercial vehicles or cars when used purely for business. 50% of the VAT is reclaimable on cars when used privately. 100% VAT reclaimable on the maintenance contract (LCV & Car, regardless of use).

Off Balance Sheet Funding: Because it is a rental agreement, the cost sits off balance sheet. There is no asset depreciation that might adversely affecting your gearing.

What does Gap Insurance do?

Gap Insurance will protect you if you write off your vehicle. Your motor insurer may not pay you enough either to settle any finance outstanding on your vehicle or purchase a replacement vehicle. 

Gap Insurance ensures that you are not left out of pocket if you have a total insurance loss, by covering any shortfall between your insurance pay out and the amount outstanding on the finance agreement. 

Over half a million cars are stolen each year and most of these are written off or vandalised. Add to that the large number of accidents and you could be the next person to suffer a vehicle write-off. A Gap Insurance policy will cover you against financial loss should your car be stolen and/or written off. 

Why should I purchase GAP Insurance?

▪ UK Car Crime is a third of all crime

▪ A vehicle is stolen every minute, 33% of these are never recovered

▪ Cars depreciate by up to 77% over a 3 year period

▪ Motor insurance settlements are always less than the price you pay for your car

▪ When a write off occurs you lose out and have to raise the funds for any short fall

▪ Write-offs occur all too often. Protect yourself

Consider this example:

Original cost of your car £20,000

Deposit £2,000

Amount of loan £18,000 

One year later the car is stolen or is in an accident and declared a total loss.

Amount still owing to your finance company £12,000

The insurance company pays you only £7,000

Amount of loan £18,000

At a minimum this leaves you with a financial GAP of £5,000! 

Avoid this financial worry. Buy one of the following gap insurance policies: 

Contract Hire & Finance Gap Insurance

In the event of a write off this will pay the difference between your motor insurance payout and the amount outstanding on your finance/contract hire agreement. Using the example above it would pay £5,000

Back To Invoice

In the event of a write off this will pay the difference between your motor insurance payout and the original price of your car. Using the example above it would pay you £13,000

Vehicle Replacement Insurance

In the event of a write off this will cover the difference between your motor insurance payout and the cost of replacing your vehicle to the exact specification, even if the price of the new replacement car has increased. 

Call us now on 0207 871 2424 for more information about Gap Insurance.