You'd like an easy way to pay, with a small or no deposit and fixed monthly payments...
Then HIRE PURCHASE is the way for you.
Hire Purchase (HP) is a simple, straightforward and competitive way of obtaining finance for vehicle or asset purchase for private or business customers.
It is one of the easiest forms of finance to arrange. It normally involves the minimum of a small deposit, although this is not always necessary and then a commitment to fixed monthly repayments. The payments can be arranged for a period of time between 12 months and 60 months, depending on your requirements and the age of the vehicle. Motor homes can be funded up to 120 months (assets vary).
You can settle an HP agreement at any time during the life of the loan, and when all is paid, the car is yours to keep or sell on.
Business benefits: Business users can claim tax relief on the interest charged and the vehicle is classified as an asset. The asset or vehicle can be written down against taxable profit by 25% (maximum £3000 per annum on passenger cars). Fixed monthly payments help with budgeting and can aid cash flow. Consult your accountant for further advice on tax and VAT implications of this product and how they may apply to your business.
You'd like reduced affordable monthly payments...
Then LEASE PURCHASE or PERSONAL CONTRACT PURCHASE is right for you.
Simple and flexible, Lease Purchase often has lower payments than HP. In general they're only available on newer cars up to 5 years old and work best for the type of vehicle that holds its value well, or higher priced prestige and sports cars.
Lease Purchase (LP) is a form of hire purchase that defers a certain amount of the loan to the end of the agreement as what is commonly called a 'balloon payment'. This amount is based on a conservative view of the expected value of the vehicle at the time the final payment is due, but does not guarantee that value. The difference, plus the interest is spread over the term of the loan, up to 48 months and repaid as a lower monthly payment.
Lease purchase is available to private individuals and to business customers. You can settle a LP agreement at any time during the life of the loan, and when all is paid, the car is yours to keep or sell on.
Business benefits: Business users can claim tax relief on the interest charged and the vehicle is classified as an asset. The asset or vehicle can be written down against taxable profit by 25% (maximum £3000 per annum on passenger cars). Fixed monthly payments help with budgeting and can aid cash flow. Consult your accountant for further advice on tax and VAT implications of this product and how they may apply to your business.We can also offer variable rate packages to business users.
Remember HP and LP can be used for Asset Purchases as well as...
Personal Contract Purchase (PCP) is similar to Lease Purchase in that it defers an amount of the loan to the end of the agreement based on the expected value of the vehicle at the point the residuial value payment is due. It is also based on your agreed, expected annual mileage. The difference, plus the interest is spread over the term of the loan and repaid as a lower monthly payment.
The unique part of the PCP agreement is that the vehicle is guaranteed by the finance company to be worth at least the value of the balloon payment at the time the balloon payment is due. This means that if the vehicle is worth less than this amount, you can hand it back to the finance company with nothing more to repay (subject to mileage and conditions). You can still choose to pay the residual value and keep the car and when all is paid, the car is yours to keep or sell on. The residual value can be refined also
PCP is only available to private individuals. No tax relief or benefits apply.
You'd like to own your vehicle from day one ...
Then PERSONAL MOTOR LOAN is for you A Personal Car Loan is simply a personal loan specifically for the purchase of a car. Unlike HP, LP and PCP, you own the car from day one. Monthly payments are normally fixed. A personal car loan provides you with a wider choice of cars and potentially competitive finance rates.
Whilst the loan is for the purchase of a vehicle, it is not secured on the vehicle in the same way as HP. A Motor Loan is an unsecured loan and therefore the vehicle is yours from the day of purchase.
Motor Loans can sometimes be provided without need for a deposit and can even be used to help where there is negative equity left owing on a previous vehicle.
Motor Loans are only available to private individuals. No tax relief or benefits apply.
Woodstone Funding offers all of these finance products but not all are available for every type of vehicle asset or customer.
We can provide funding for: New & Used Cars (bought from a dealer OR privately) Vans & Light Commercials up to 3.5 tonnes Commercial Vehicles over 7.5 tonnes Caravans and Motor Homes Motorcycles Plant and Machinery To find out which product is best for you, contact Woodstone Funding for more info. For a quotation and guidance, please complete the form below.