How it works

To take advantage of the finance offering, and to be able to drive away the same day, a UK Driving Licence, licence check code, recent bank statement or credit card statement and a utility bill, debit card or credit card is required.

Deposit

An initial desposit is required, that is deducted from the total cash price of the vehicle to give a balance that requires financing. A typical deposit would be 10% of the vehicle purchace price.

Interest & Payments

Interest is added to the total finance balance and interest is then repaid in equal instalments throughout the life of the loan via monthly repayments, usually over a 1, 2, 3, 4 or 5-year agreement (whichever you prefer).

Finance example

Total cost of vehicle - £5,000

Cash deposit - £0

Part exchange - £0

Outstanding finance - £0

Total deposit - £0

Total credit - £5,000

Term - 60 months

Monthly payment - £120.38

Admin charges* - £300

APR* - 16.70%

Customer Rate* - 7.00%

Total cost - 60 months @ £120.38 = £7,222.80

Admin charges = £300

Grand Total = £7,522.80

* Admin charges and interest rates may vary according to circumstances.

Ownership

After you've made your final payment at the end of your agreement, the car is yours.

Finance Explained

Hire Purchase

What is it?

Hire purchase is a way to finance buying a new or used car. You (usually) pay a deposit and pay off the value of the car in monthly instalments, with the loan secured against the car. This means you don’t own the vehicle until the last payment is made.

How it works

In most situations, you first need to put down a deposit on the car you want to buy. This is usually 10% of the vehicle’s value. The rest of the value of the car will then be paid off in instalments over a period of 12 to 60 months (one to five years).

PCP

What is it?

With a PCP agreement, you have the option to buy the vehicle at the end of the term in exchange for a balloon payment.

How it works

The big difference between PCP and PCH is PCP gives you the opportunity to buy the car and become its legal owner at the end of the leasing contract. To do this, you have to pay a ‘balloon payment’ – also known as the Guaranteed Minimum Future Value (GMFV) – at the end of the contract. This is in addition to your deposit and monthly payments. With PCP the total amount you repay in monthly instalments is based on an estimate of how much the car will lose in value though depreciation between the start and end of the contract. If at the end of the contract you don’t want to buy the car, you simply hand it back. As long as the car is in good condition and hasn’t exceeded the agreed mileage, you won’t have to pay any more money.

PCH

What is it?

Under a PCH agreement, you never own the vehicle and you have to hand it back at the end of the term.

How it works

You're renting a car for (typically) two or three years, with an agreed mileage limit of (typically) 10,000 miles a year. There's no option to buy the car at the end of the contract, you just hand the keys back to the finance provider. In effect, your payments are only covering the car's depreciation.




Finance is subject to status, terms and conditions apply. Written quotations available on request. D&J Motors use a carefully selected panel of lenders to assist with the funding of vehicles. There are also other lenders available.