New and Used Car Finance in Halifax, West Yorkshire

Hire Purchase (HP)is very similar to borrowing a sum of money from a bank and paying it back over a fixed period of time, with interest. Hire Purchase is a type of secured loan that are often preferred over alternative (unsecured) loans because they allow a greater borrowing limit.

The term "secured loan" means exactly that, a loan that the lender can secure against an asset (in this case, the vehicle). HP gives you additional rights over those of a personal loan and is only available through dealers that have passed the stringent process of the finance companies.

Low Payment Plan will enable you to purchase your next car with lower monthly repayments. The way this is achieved is by deferring an amount of the total cost of the vehicle to the end of the agreement. This amount is known as the Residual Value (RV). It is the customer's responsibility to settle the final payment either through additional finance, cash or settlement by part-exchange.

The Low Payment Plan product has no tie to a mileage contract. Repayment periods are typically taken over 2,3 or 4 years and settlement can be made at any stage of the agreement. We would recommend that you select your anticipated annual mileage to a realistic level so that the realistic residual value is set for the vehicle. At the end of the agreement you have three options:

1. If you want to keep the vehicle, you can simply pay off the refinance balloon payment.
2. You can come back to us and part exchange you vehicle for a new one. If the trade-in value is greater than the RV, the difference can be used towards a deposit on the next agreement.
3. You can sell the vehicle privately and keep and profit over and above the RV.

Business Contract Hire - This Financing option is for companies who can reclaim the VAT element of the rental and who do not wish to show the vehicle as an asset in the accounts.

Contract hiring is very popular with companies as the contact hire company can reclaim the VAT on their purchase and so can charge lower fixed monthly rentals. The initial deposits are low and maintenance packages can be built into the rental which helps with budgeting. By paying a fixed monthly rental no large amounts of cash are required to purchase out right and so helping with cash flow.

The terms of the agreement are variable and are based on the value of the vehicle, mileage to be covered and the future predicted residual value of the vehicle at the end of the agreement.

At the end of the agreement the vehicle simply goes back, but any excess mileage or damage will have to be paid for.

Benefits of Contract Hire

1. Low deposits
2. Variable terms
3. Fixed monthly costs
4. Maintenance packages available
5. No depreciation risks
6. Less cash outlay than outright purchase
7. Vehicle returned at the end of contract
8. Loan Car available while vehicle is off the road (maintenance packages)
9. Vehicles not on the balance sheet

This Financing option has the same benifits as the business contrat hire but a private person will be responsible for the VAT eliment of the payments, but this would still be the case if you bought the car outright and a much larger sum all at once.

The terms of the agreement are variable and are based on the value of the vehicle, mileage to be covered and the future predicted residual value of the vehicle at the end of the agreement.

At the end of the agreement the vehicle simply goes back, but any excess mileage or damage will have to be paid for.

Benefits of Contract Hire

1. Low deposits
2. Variable terms
3. Fixed monthly costs
4. Maintenance packages available
5. No depreciation risks
6. Less cash outlay than outright purchase
7. Vehicle returned at the end of contract
8. Loan Car available while vehicle is off the road with maintenance packages

Lease Purchase has the same benifits as contract hire but you buy the vehicle at the end of the contract at an agreed price.

PCP is a new form of financing it was introduced in 2002 when the new company car tax rules came in. Many people found that the new taxation laws on company cars were unacceptable and so opted out and received increased wages / salaries instead which doesn't incur the benefit in kind tax.

The payments are calculated on the make and model of car, term of contract, age of car, mileage covered at the end of the contact and the expected future value. Some examples can be seen below.

The contract has a deferred payment that gives you lower monthly payments and the contact company guarantee the end value of the car. If the trade in value doesn't cover the final payment then the contract company will take the vehicle off you and you simply start again or on the other hand the car may be worth more than the final payment and you can pay off the balance and take ownership of the car. Any mileage excess will be taken into account and will have to be paid for in the event the vehicle goes back.

Benefits of Contract Hire

1. Lower variable deposits
2. Fixed monthly payments
3. Lower taxation on cash rather than on the car
4. Being able to choose the car of your choice
5. Maintenance packages available
6. Optional ownership