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When investing in your next new or used car, it’s of the utmost importance that you’re able to secure the best value for money possible. For most drivers, this means securing vehicle finance that enables you to spread the cost of purchasing into manageable and affordable monthly repayments. At Cawdor Vauxhall, we can help you secure financing that makes such repayments as easy as possible, with competitive rates of APR as standard.
One of the most convenient and affordable ways of driving a quality vehicle is to take advantage of a Personal Contract Purchase agreement. Such a scheme enables you to select the vehicle of your choice, pay a deposit, and agree a length of term between 18 and 48 months. We’ll provide you with a Guaranteed Future Value for the vehicle - essentially, how much the model will be worth at the end of the agreement. You will then be responsible for fixed monthly payments that pay off the difference between the sale price and the Guaranteed Future Value.
One of the major benefits of a PCP agreement is that you have plenty of flexibility when the agreement comes to the end. You can return the model with nothing more to pay, take out a new financing scheme, or even pay off the outstanding balance in order to become the full owner of the vehicle.
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.
A Conditional Sale agreement - also known as Hire Purchase - simply lets you borrow money in order to pay for the purchase of the vehicle. You then repay this amount over the course of monthly instalments, steadily paying off the outstanding balance. At the end of the agreed period, you will become the outright owner of the car and will be free to do with it as you please.
You can learn more about Vauxhall financing plans by liaising with a member of the Cawdor Vauxhall team today.
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 Conditional Sale 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.
