Here is a quick overview of the three most popular options that we offer at BellaMachina. Get in touch for a no obligation quote.
Personal Contract Purchase (PCP)
Available on new and a majority of used cars, this popular financing option hastwo characteristics that make it unique from other forms of financing. The first is the Guaranteed Future Value (GFV). A car’s GFV is calculated by the finance company based on your anticipated mileage. This amount is deducted from the cash price of the car and deferred to the end of the agreement as the Final Payment. The customer makes payments based on the difference between the cash price (less any deposit paid when the agreement is set up) and the final payment. These payments will always be lower than any other form of purchase agreement over the same term. The second unique characteristic is what happens at the end of the agreement; with 3 choices available. These are:-
- RETAIN the car. By simply paying the Final Payment (there is a Option to Purchase Fee) and the vehicle is yours.
- RETURN the car. Should the vehicle’s value not match the Final Payment, then subject to certain mileage and condition clauses you may hand the vehicle back to the finance company
Hire Purchase (HP)
Available on all new and used cars (subject to age & Mileage) this flexible finance plan will spread the cost of acquiring your car over 24 to 60 months. Whilst a deposit is normally required, subject to status, our lenders will advance up to 100% of the purchase price of your car. At the end of the agreement, assuming all repayments have been made the car is yours on payment of a £175 Option to Purchase Fee. The plans themselves are flexible, and able to have either full or partial settlements made at any point during the agreement.
Personal Contract Hire (PCH)
Available on new cars, this is a long term rental plan. The car is the property of the leasing company who therefore bear any depreciation costs with you paying fixed rentals for an agreed period and mileage. At the end of the agreement, subject to mileage and condition, the car is returned to the leasing company. All these rental agreements include the cost of annual road fund licence, and servicing and maintenance can be added ensuring fixed budgeted motoring.