Here at Trenton, we understand that purchasing a vehicle doesn’t always come cheap. That’s why we work tirelessly to provide money saving special offers and provide you with affordable rates of financing that will help spread the cost into manageable repayments. Our financing schemes - Personal Contract Purchase and Hire Purchase - are detailed below and both provide you with the opportunity to benefit from flexibility and value for money.
Personal Contract Purchase - or PCP - is an affordable means of getting behind the wheel of a new vehicle every few years. After selecting your model, you will be able to pay an initial deposit and agree a length of term. A member of our sales team will calculate the Guaranteed Future Value of the vehicle at the time your agreement comes to an end. You will then be required to pay off the difference between the sale price and the Guaranteed Future Value through fixed monthly repayments.
At the end of the agreed term, you will have the option to return the vehicle to us, take out a new financing package, or pay the full Guaranteed Future Value in order to become the full owner. Such flexibility is what makes a PCP arrangement such a popular option, enabling you to change models on a frequent basis.
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.
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.