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The Buyers Guide to Car Finance

THE BUYERS GUIDE TO CAR FINANCE Although buying a new car is exciting, it can also be daunting trying to understand which, of the variety of different finance options available, is the best for you. Do you know your PCP from your PCH? What's an APR? Well, read on to find everything you need about buying new. THE BENEFITS OF BUYING A NEW CAR One of the main reasons people choose to buy a new car, rather than go down the second hand route, is to save time, effort and hassle. With a new car, you are guaranteed up-to-date safety features, improved fuel efficiency and no MOT for the first three years. MOT CENTRE 3 YEAR WARRANTY AS A MINIMUM IMPROVED FUEL NO MOT FOR THE FIRST 3 YEARS EFFICIENCY LOW CO. LOW OR ZERO CUSTOMISED NO UNKNOWN ROAD TAX SPECIFICATION OWNERSHIP HISTORY KEEP YOUR EYES PEELED FOR LOW FINANCE NUMBERS! APR is the amount you are charged for borrowing money to pay for your car over the term agreed (typical 36 month period). The lower the number the lower the interest. 0% APR (Annual Percentage Rate) means no interest charges. You will pay no more than the car 'on the road' price. 0% APR Representative AVAILABLE OPTIONS TO FINANCE A NEW CAR Buying a car on finance can allow you to drive away in a brand new car at an affordable monthly cost OPTION 1 PERSONAL CONTRACT PURCHASE (PCP) The most flexible solution, Personal Contract Purchase is a finance option that enables you to put down a smaller deposit, and easily upgrade into a new car at regular intervals. STEP 1 STEP 2 STEP 3 36 ZERO OR LOW DEPOSIT UPGRADE YOUR CAR (PART EXCHANGE) or MONTHLY PAYMENTS (TYPICAL PERIOD) MAKE FINAL PAYMENT or RETURN YOUR VEHICLE TOP TIP Sometimes manufacturers throw in deposit contributions so always keep an eye out! Guaranteed Future Value (Final Payment) YEAR 1 YEAR 2 YEAR 3 NB: Your Guaranteed Future Value; this is calculated at the beginning of your agreement and is based on what the car's estimated value will be at the end of the PCP plan. OPTION 2 CONDITIONAL SALE Perfect for those who have a larger deposit to put down, in particular if you wish to part exchange. All you have to do is choose your car, agree a deposit, repayment period and a fixed monthly amount. At the end you own the car. STEP 1 STEP 2 0-50% 36 YOU NOW OWN THE VEHICLE DEPOSIT OR MONTHLY PAYMENTS (TYPICAL PERIOD) PART EXCHANGE "up to 60 month terms available TOP TIP a your car at TWWhite & Sons Servicing manufacturer approved workshops will rwarranty and help keep validate your your car resale value high. YEAR 1 YEAR 2 YEAR 3 OPTION 3 PERSONAL CONTRACT HIRE (PCH) Renting a car with PCH is perfect for those who want peace of mind, a new car each term and the option to build in service and maintenance into the monthly payment. STEP 1 STEP 2 STEP 3 Agree the following 36 VEHICLE IS RETURNED TO THE DEALERSHIP ANNUAL MILEAGE AT THE END OF THE CONTRACT AGREEMENT LENGTH MONTHLY PAYMENTS (typical period) REPAYMENT AMOUNT (NO DEPOSIT NEEDED) TOP TIP PCH is a tax efficient motoring package for businesses. Making budgeting simpler and releasing funds for core business activity with no unexpected costs. YEAR 1 YEAR 3 YEAR 2 BE CLEVER VWITH YOUR BUDGET! ADDITIONAL COSTS TO CONSIDER In addition to your monthly finance costs, it is worth considering the following elements in your car budget: INSURANCE MAINTENANCE ROAD TAX FUEL ECONOMY BREAKDOWN COVER DEPRECIATION NB: New cars are typically more economical and reliable so are cheaper insure and maintain compared to older vehicles twwhiteandsons established 1964 This infographic does not constitute financial or other professional advice. You should consult your professional adviser if you require financial advice.

The Buyers Guide to Car Finance

shared by alexzazzle on Dec 02
A comprehensive guide from TW White on the different ways of purchasing a new car and what each method entails.


TW White


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