National Auto Sales are able to offer you finance products by introducing you to Credit Lenders to assist with the purchase of you next new or used vehicle, whether a car or a van. Please find below a brief description of the products available.
Hire Purchase:
Also know as HP, this is the simplest form of vehicle finance. The agreement involves a finance company (the creditor) purchasing a vehicle on behalf of the customer, allowing the customer to pay for the vehicle in monthly instalments rather than one large upfront sum.This enables the customer to pay a deposit and take immediate possession of the vehicle, then once the total amount of repayments have been met the finance agreement is ended and the vehicle is the full possesion of the customer.
Personal Contract Purchase:
Also known as PCP, assists you, the customer, receive a lower monthly payment. A guaranteed Future Value (balloon payment) is made at the end of the agreement period. A PCP gives the customer the option at the end of the agreement to hand the vehicle back (to the lender) or take ownership of the vehicle by paying the balloon figure.
For example:
Cost £20,000
Deposit £5,000
Balance to fund: £15,000
Monthly payment: £250 over 48 months
Balloon payment: £4,500
Lease Purchase
In a similar method to PCP, as above, however the option to return the vehicle at the end of the period is removed from the agreement, meaning that although you receive lower payments, you are bound to take the vehicle at the end of the agreement and pay the balloon.
Finance lease (Commercial Vehicles)
When purchasing commercial vehicles it us usual to be aked for the VAT element of the vehicle to be paid upfront as a minimum deposit. This method would be like Hire Purchase where after the initial VAT deposit the payments would be split over an agreed period.
Finance Lease agreements help to, instead, spread the VAT across the term, meaning no upfront VAT payments, the VAT is on the monthly payments.
For example:
Cost £20,000 + Vat
Deposit £500 + Vat
Balance to fund: £19,500 + Vat
Monthly payment: £300 + vat over 59 months
Finance Lease products can also be offered with a balloon payment, again bringing your monthly cost down.
Finance lease products usually carry a peppercorn tax with their agreements. This means that after the final payment has been made to settle the agreement there may be small yearly costs applied for the term of your ownership. Please check any agreements when purchasing as costs can differ.
* The above example are not representative to any finance agreement, and are purely for display purposes only.
Call: 01704 570657 or Mobile: 07411 953306 or Email: sales@nationalautosales.co.uk
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