Investing in a new or used car from the likes of Citroën doesn’t always come cheap, with the need for affordable rates of financing making purchasing manageable. At Trenton Citroën in Grimsby, we’re able to help secure you exceptional rates of APR to help spread the cost as affordably as can be, with both Personal Contract Purchase and Hire Purchase schemes available. Learn more about these options below or by liaising with a member of the team today.
A Personal Contract Purchase (PCP) scheme represents the ideal solution to get behind the wheel of a brand-new vehicle every few years. Such an agreement provides flexibility and affordability, and simply requires you to pay an initial deposit followed by fixed monthly repayments. These repayments will be covering the difference in cost between the sale price and a figure known as the Guaranteed Future Value of the vehicle at the end of the agreed term.
Such an agreement enables you to drive away in a new Citroën for less than you might expect, and also provides you with the utmost flexibility. At the end of the term, you will have the option to return the model to us, take out a new financing plan, or pay the outstanding Guaranteed Future Value in full to become the full owner. With such versatility, a PCP agreement is popular among those that like to change vehicles every few years.
It is important to note that due to market conditions your vehicle may not be worth more than the Guaranteed Minimum Future Value at the end of the agreement, thus affecting the deposit available to purchase you next vehicle and subsequent monthly repayments. Therefore, it is imperative that you ensure that you accurately predict your mileage over the term, as any additional mileage is subject to an excess mileage charge.
Your options at the end of the agreement;
I.Renew – you can part exchange your vehicle at a dealership and start over again. If the vehicle is worth more than the Final Optional Payment, you can use the difference as a deposit
II.Retain Ownership – You may prefer to keep the vehicle, to do this you are required to pay the Optional Final Payment in full. Some finance providers will allow this value to be refinanced at the prevailing interest rate.
III.Return – If your needs or requirements have changed you can hand the car back to the dealer with nothing more to pay (subject to mileage and condition. Excess mileage charges may apply)
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 more traditional form of vehicle financing is Hire Purchase. This straightforward plan enables you to pay for the vehicle over the course of a number of years, resulting in you becoming the outright owner once the final payment is made. Such an arrangement is flexible and affordable, breaking down the cost into fixed monthly amounts that are manageable and easy to budget for.
To learn more about the purchasing options available from Trenton Citroën, liaise with a member of our sales team today. They’ll be happy to answer any questions you may have and provide you with the best deal possible.
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 Hire Purchase 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.