We know that buying a car is a significant investment, which is why we offer a variety of finance options to help you stretch your car payment and stay on top of your budget. Even if you are new to the world of car finance, the finance specialists at Monty’s Of Sheffield will help by giving you all the impartial advice you need.
The type of finance contracts that we offer include choices such as Hire Purchase (HP), Personal Contract Purchase Plans (PCP), Leasing and Personal Contract Hire. The differences between each are significant, with one more likely to suit you than the others. For instance, it is important to keep in mind that each plan has different payment periods, as well as deposit amounts and details regarding ownership.
We look forward to helping you purchase your next dream car.
Personal Contract Purchase is a Suzuki Finance that can help you buy your dream car with lower monthly repayments than a Hire Purchase product. This is because a large proportion of the amount you repay is deferred into an optional final repayment.
The main difference with Personal Contract Purchase, is the option to choose what you do at the end of the agreement. You can part exchange the vehicle, return the vehicle (return conditions apply), or pay the optional final repayment and own the vehicle.
You choose your deposit at the beginning of the agreement, and then pay equal monthly repayments with a fixed interest rate, over your chosen period. At the end of the agreement you choose one of the following 3 options:
You will also decide how many miles you’re likely to travel each year (up to 24,000 miles), this will affect your monthly repayments and the optional final repayment amount. Make sure you select a realistic mileage allowance, otherwise excess mileage charges may be incurred if you decide to return your vehicle above the agreed contractual mileage.
One of our sales team will be able to talk you through the personal contract purchase options available to you, and will be able to answer any questions you might have.
A car’s Guaranteed Minimum Future Value (GMFV) is equivalent to the optional final repayment and is based on the estimated value of the vehicle at the end of the agreement. The value assumes that when returned the vehicle is within the set maximum agreed mileage and good condition.
The GMFV protects you against any unexpected decrease in the value of the vehicle. This means Suzuki Finance takes on the risk of depreciation above the level of the GMFV, and you can hand the vehicle back with nothing to further to pay at the end of the agreement.
A Personal Contract Purchase agreement is ideal if you’d like to keep your options open as you won’t be paying the full value of the car (unless you decide to buy it at the end).
Other benefits of Personal Contract Purchase include:
Before you decide whether a Personal Contract Purchase agreement is right for you, it’s worth bearing in mind that:
We hope you found this information useful. To find out more click on the link below and one of our sales team will be in touch shortly.
Personal Contract Hire is a fixed cost rental agreement.
You first choose your new Suzuki car, pay an initial rental in advance, followed by fixed monthly rentals to suit your budget. You can even choose an optional maintenance package as part of your agreement which can help take away the hassle of keeping your vehicle in good condition.
It’s different from Personal Contract Purchase (PCP) because there is no option to purchase the car at the end of the agreement and the vehicle must be returned.
Personal Contract Hire works by choosing from an initial rental payment in advance of 1-12 months, you then set the contract term between 2-5 years.
You then decide your annual mileage limit – the minimum is 5,000 and the maximum varies by vehicle. If your circumstances change during your agreement you may be able to amend your contracted mileage. You can also then decide whether to add an optional maintenance package at an additional cost.
At the end of the contract you must return the car and you’ll have nothing more to pay if the vehicle condition is in line with BVRLA guidelines and hasn’t exceeded the maximum agreed annual mileage.
If the vehicle doesn’t meet the mileage and condition terms, then excess charges will apply.
Choosing the right finance agreement that’s suitable for you can be quite difficult to understand, so we’re here to make it easy for you.
The benefits of personal contract hire include:
Before you decide whether a Personal Contract Hire agreement is right for you, it’s worth remembering that:
Hire Purchase is one of the finance products offered by Suzuki Finance to help spread the cost of buying a car. It’s a great choice if you want to own your car at the end of the agreement.
Suzuki Finance owns the vehicle for the duration of the finance agreement. You will become the owner of the vehicle after all the repayments including any interest has been paid.
You choose your deposit at the beginning of the agreement, and then pay equal monthly repayments with a fixed interest rate, over your chosen period. After you’ve made all the repayments including any interest you will become the owner of the vehicle.
Our team of experts will be able to talk you through the Hire Purchase options available to you, and will be able to answer any questions you might have.
Hire Purchase is ideal if you want to own your car outright at the end of your agreement.
Other benefits of Hire Purchase include:
|Hire Purchase||Personal Contract Purchase (PCP)||Personal Contract Hire|
|Deposit Required||Yes. Flexible. 0% may be available.||Yes. Flexible. 0% may be available.||Yes. 1 - 12 months initial rental.|
Length of Agreement
|From 1 -5 years||From 2 - 4 years||From 2 - 5 years|
|Final lump sum repayment at agreement end||N/A||Yes||N/A|
|Maximum permitted age of car at agreement end||Typically 14 years||Typically 7 years||Typically 5 years|
|Ownership at agreement end||Yes||Yes. If you pay the final lump sum payment.||No ownership option available. You must arrange to return the vehicle.|
|Goods return option||N/A||Yes. Return conditions apply.||No ownership option available. You must arrange to return the vehicle.|
|Excess mileage charges||N/A||Yes. If exercise goods return option and exceed mileage allowance.||Yes. If contracted mileage allowance exceeded.|
NB. Subject to settling outstanding finance. New agreements subject to status.
Voluntary termination rights
NB. Regulated agreements only
Fully comprehensive insurance required
Ability to amend monthly payment due date
NB. Subject to loss of interest charge.
|Yes. Once every 12 months.||Yes. Once over the lifetime of the agreement.||Yes. Subject to conditions.|
*Hire Purchase, PCP and Personal Contract Hire are subject to status and only available to UK residents aged 18 and over. Credit products are provided by Suzuki Finance, a trading style of Suzuki Financial Services Ltd, St William House, Tresillian Terrace, Cardiff CF10 5BH. Personal Contract Hire is provided by Lex Autolease Limited trading as Suzuki Contract Hire, Heathside Park, Heathside Park Road, Stockport SK3 0RB.
**Under our PCP product, you have the option at the end of the agreement to return the vehicle and not pay the deferred optional Final Payment. Providing the vehicle is in good condition and has not exceeded the maximum agreed mileage you will have nothing further to pay. If the vehicle has exceeded the maximum agreed mileage a charge for excess mileage will apply.