Used Car Finance Details - Blackfen Motoring World, Kent

HP or Hire Purchase

Hire purchase offers a straightforward way to spread the cost of your new car. With this method of finance you have a fixed rate of interest with fixed monthly payments, making budgeting simple and easy.

You choose the amount of deposit you wish to pay, typically between 10-50% of the car’s cost. The remainder of the balance, together with fixed interest, is repaid over an agreed period of your choosing (12-60 months).

The advantages of Hire Purchase:

Low deposit - keeps valuable personal or business cash available
Control - you decide the deposit, you decide the term
Fixed monthly payment – makes budgeting simple
Flexibility - doesn't compromise your other lines of credit
Assets - you gain ownership of the car
Tax benefits - Tax allowances for business users
VAT free - no VAT on payments

PCP or Personal Contract Purchase

Personal Contract Purchase is an increasingly popular choice for car finance. It offers the best in flexibility at the end of the agreement, together with low, fixed monthly payments.

PCP is perfect if you are opting out of your company car scheme. Your company car allowance can fund your monthly payments, but there is no company car tax to pay.

At the beginning of the agreement your car's guaranteed future value is calculated, based on an agreed mileage and age. This is deferred as a final 'balloon' payment.

With PCP you don't have to commit to buying the car at the outset. You use it for an agreed period of time (24-48 months) and then decide at the end of this period what you would like to do. You have four options:

Buy the car by paying an agreed minimum residual value
Part-exchange the vehicle for another
Sell the vehicle privately (settling the balloon)
Or, subject to mileage and condition, return the car with nothing more to pay (e.g. if depreciation resulted in negative equity)

The advantages of Personal Contract Purchase:

Low risk - A minimum future value is guaranteed
Low deposit - keeps valuable personal or business cash available
Low fixed monthly payments - perfect for budgeting
Choice - Buy the car, part-exchange it or just return it
A better car - lower payments can help you choose a higher specification car
Tax advantage - the cash alternative when you opt out of a company car scheme is not subject to company car tax
VAT free - no VAT on your payments

Lease Purchase or HP with a Baloon payment

Hire purchase with a balloon offers lower monthly payments than normal hire purchase. Instead, at the end of the agreement, you can make a final lump sum payment (or 'balloon') to own your car.

It's fixed rate finance - but with a lower fixed monthly outlay since you defer repayment of some of the borrowing. At the end of the agreement options include car purchase, refinance, part exchange or resale.

The deposit you pay is flexible - typically between 10-50% of the vehicle cost. The deferred balloon element is calculated on the estimated future resale value of the car.

The difference, plus fixed interest, is repaid in equal instalments over an agreed period (12-60 months), plus a final balloon payment.

The advantages of Hire Purchase with balloon?
Low deposit - keeps valuable personal or business cash available
Lower fixed monthly payments - perfect for budgeting
A better car - lower payments can help you choose a higher specification car
Flexibility - does not compromise your other lines of credit
Assets - you gain vehicle ownership
Tax benefits - Tax allowances for business users
VAT free - no VAT on payment

Finance Calculator

These figures are estimates for your interest only as to typical payments and should not be relied upon. Full written quotations are available on request from Blackfen Motoring World.

Car Price: (£)	APR FROM: (Rates vary)	%
Less Cash Deposit: (£)	Less Trade In Allowance:(£)

Period	Approximate Monthly Payment	Approximate Credit Charge	Approximate Total Payable
12 Months
24 Months
36 Months
48 Months
60 Months

These figures are estimates for your interest only as to typical payments and should not be relied upon. Full written quotations are available on request from Blackfen Motoring World. Facilities available to persons aged 18 or over resident in the UK who meet normal credit requirements. Indemnities may be required in certain circumstances. All applications for Credit are subject to acceptance. Rates may vary. This estimator is for your rough guidance only, figures may not be accurate.