Products : Private Individual

Hire Purchase

• The customer hires the vehicle for a fixed period during which time they repay, by instalments, the total cost of the car plus interest. At the end of the contract period, the customer pays a nominal "option to purchase" fee to obtain ownership of the vehicle.

Hire Purchase with Balloon (Lease Purchase)

• As above, the customer hires the vehicle for a fixed period during which time they repay, by instalments, the total cost of the car plus interest.

  However, a substantial part of the vehicle cost is deferred until the end of the agreement – thus reducing the monthly repayments compared to a Hire Purchase deal. This deferred amount (the balloon) is not guaranteed.

Personal Contract Purchase

At the beginning of the period, the customer will pay a deposit and have set monthly repayments. At the end of the contract, the customer has 3 options:

• Start the process again by going back to the Dealer, trading in the car and paying off any minimum guaranteed future value (MGFV) to the finance company. Any surplus can then be put towards the deposit on a new car.
  

• Return the car and walk away. If the market conditions have changed and the car is worth less than the MGFV, the lender will absorb any loss. Provided the vehicle is in good condition for its age and does not exceed the agreed mileage.
  

• Keep the car by paying off the MGFV. Even if the vehicle is worth more, the customer only has to find the agreed Minimum Guaranteed Future Value set at the outset of the finance agreement

Both new and used vehicles can be purchase on PCP

Low Rate Personal Loan

• The customer buys a car over a fixed period and at a fixed low rate of interest. No documentation or option to purchase fees are payable. This agreement is to provide competition to the Direct Lenders own products.

Variable Rate (Unregulated Agreements Only)

• The customer buys a car over a variable period and with a variable rate of interest. Interest is charged daily. This product is useful where a customer changes his car at regular intervals.