We have relationships with high street lenders and specialist motoring finance houses too, that is why we have helped hundreds of customers secure the best finance deal for their budget.
Our expertise with finance means that even if you have a poor credit rating we can help arrange finance for you.
No matter what your current or previous financial situation may be; our sales advisers will be happy to help you towards purchasing a vehicle on Finance. As we deal with these finance companies every day we know exactly where to place an application for a successful result. We work firmly towards your personal budget and often will help you save money.
You pay an initial deposit and spread the remaining cost of the vehicle over a series of fixed monthly payments. By the end of the agreement, you will have paid the total cost of the car plus a rate of interest on the loan.
When you select from our high-quality used car range, you can adjust the length of time you want to spread the cost over. You can also specify the proportion of the total cost you can afford to pay as a deposit and the annual mileage you expect to cover in your prestige car. This flexibility gives you complete control over financing your car. You can also adjust the preferred terms and deposit of your agreement on our search function, to give you an idea of what you might be able to afford.
If you are interested in financing your purchase from Otter Vale Motor Services, you can ask any of our sales advisers for assistance. They will be happy to explain the various options available and make recommendations based on your individual requirements. You can arrange an appointment by enquiring online via the contact form on our website, or by phoning our dealership in Honiton.
Personal Contract Purchase (PCP) is a finance product that allows you the opportunity to buy a new or a used car.
It is similar to a Hire Purchase agreement as you will usually pay an initial deposit, followed by monthly instalments over a term typically between 18 to 48 months.
What makes PCP different to Hire Purchase (HP) is that your monthly instalments are paying off the depreciation of the car, and not its entire value, over the course of the term. Then, when you get to the end of your agreement, there is a final, balloon payment that must be made if you want to keep the car. The balloon payment is often referred to also as the Guaranteed Future Value (GFV).
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.
Hire Purchase is a way to finance buying a new or used car. You will normally pay an initial deposit and will pay off the entire value of the car in monthly instalments. When all the payments are made, the Hire Purchase agreement ends, and you own the car outright.
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.