Here at Hathaway Motors we understand how frustrating it can be when it comes to buying a car but it can become even more frustrating to find out that you don't have the savings to purchase your dream vehicle. Being an Approved Finance Partner of the Close Brothers Motor Finance we will do our very best to get you the finance you need.
Car finance products
Hire Purchase,Personal Contract Purchase & Lease Purchase are popular methods of funding vehicles and are typically short-term loans ranging from 12 – 60 months. This gives you the freedom to change your car every few years. For further information on the finance products we offer, read through the information below or watch our video.
Quick and easy application
Applying for car finance won’t involve lengthy meetings with your bank manager. Once you’ve chosen your new car, we will take a few details to send to our lenders who will normally reach a decision within 30 minutes. If your loan application is approved you can then pay the deposit and arrange a convenient time for collection of your new car.
Helping you manage your monthly budget
The interest on your finance agreement is set at a fixed rate, so you know exactly how much money is coming out of your account every month. This means you can spread the cost of your car and manage your budget over the course of the agreement.
Keep your money in the bank
Keep your savings in the bank for a rainy day or for those unexpected bills and leave your credit lines with your bank open, should you need to borrow in the future.
Contact us now for a FREE no obligation quote to finance your next car
Hire Purchase(HP) is very similar to a Personal Bank Loan as in you borrow a certain amount of money and pay it back over a fixed period of time with interest. Normally with a HP agreement you are required to pay a small deposit, usually 10% but this can be lower dependant on the amount of borrowing you require. This can also be paid in the form of a Part Exchange. HP is classed as a secured loan as the the lending would be secured against the vehicle until the final payment is received where then you would receive full ownership of vehicle. This is different to a Personal Bank Loan as these are classed as unsecured as they don't require you to secure the funds to a particular asset. With HP being a secured loan it enables you to increase the borrowing that you require so can be a benefit over a Personal Bank Loan.
PERSONAL CONTRACT PURCHASE
Personal Contract Purchase(PCP) is similar to HP as in pay a small deposit and pay fixed monthly payments. The difference with a PCP agreement is that your monthly repayments are only actually paying off the depreciation of the vehicle and you have to predict your annual mileage. When you take out a PCP Contract out you are given a Guaranteed Future Value (GFV) of the vehicle which is an estimate of what the vehicle will be worth when your contract finishes. Because you are only paying off the depreciation of the vehicle, this can make your monthly repayments lower compared to a Personal Bank Loan & HP. Once your contract expires you have 3 options:-
1- You can buy the vehicle by paying the balloon which will be the Guaranteed Future Value (GFV)
2-Hand the vehicle back to the finance company. The GFV figured agreed at the start of the contract will cover the completion of the deal
3 -Use the vehicle as a part exchange and start a new PCP contract
There is a certain criteria required on the vehicle to be able to take out a Personal Contract Purchase contract(PCP)
Lease Purchase is similar to a PCP Contract in were you pay a small deposit and fixed monthly payments and have a balloon payment at the end of the contract but the difference is that on a Lease Purchase there isn't a Guaranteed Future Value(GFV) instead there is a Residual Value(RV) so therefore you are unable to return the vehicle to the finance company. An RV is a calculation that the finance company make at the start of the contract which should mean that the RV figure is more than the value of the vehicle so to clear the remaining balance you could either take out further finance,settle with a cash payment or part exchange the vehicle as long as the part exchange price covers the remaining balance if not you would be required the pay the difference. The RV figure given at the start of the contract isn't guaranteed by the finance company so could be lower than the value of the car.
There is a certain criteria required on the vehicle to able to take out a Lease Purchase contract