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Euxton Car Sales provide a wide range of used car finance options,
which are outlined below
You can complete an used car
finance application and Euxton Car Sales will source potential
finance for you from our providers. In gaining pre-approval it allows
you to make a considered choice on your next car purchase in a quick
and convenient manner through a greater selection of finance products.
Hire Purchase
Hire Purchase (HP) is very similar to borrowing a sum
of money from a bank and paying it back over a fixed period of time,
with interest. Hire Purchase is a type of secured loan which are
often preferred over alternative (unsecured) loans because they
allow a greater borrowing limit. The term "secured loan"
means exactly that, a loan that the lender can secure against an
asset (in this case, the vehicle). HP gives you additional rights
over those of a personal loan and is only available through dealers
that have passed the stringent approval process of the finance companies.
Low Payment Plan
Low Payment Plan will enable you to purchase your next car with
lower monthly repayments. The way this is achieved is by deferring
an amount of the total cost of the vehicle to the end of the agreement.
This amount is known as the Residual Value (RV). It is the customers
responsibility to settle the final payment either though additional
finance, cash or settlement by part-exchange.
The Low Payment Plan product and has no tie to a mileage contract.
Repayment periods are typically taken over 2, 3 or 4 years and settlement
can be made at any stage of the agreement. We would recommend that
you select your anticipated annual mileage to a realistic level
so that a realistic Residual Value is set for the vehicle. At the
end of the agreement you have three options:
- If you want to keep the vehicle, you can simply pay off or
refinance the outstanding balloon payment.
- You can come back to us and part exchange your vehicle for
a new one. If the trade-in value is greater than the RV, the difference
can be used towards a deposit on the next agreement.
- You can sell the vehicle privately and keep any profit over
and above the RV.
Personal Contract Purchase
A Personal Contract Purchase (PCP) plan will enable you to purchase
your next car with lower monthly repayments. The way this is achieved
is by deferring an amount of the total cost of the vehicle to the
end of the contract. This amount is known as the Guaranteed Future
Value (GFV).
The Guaranteed Future Value plus your deposit is subtracted from
the cash price of the vehicle and your monthly payments are based
on the balance (plus interest on the balance and the GFV).
By only repaying the difference between the cash price and the optional
balloon payment you are only financing the depreciation of the car.
At the end of the contract you have four options:
- You can return the vehicle to the finance company. As long
as you have not exceeded the agreed mileage, you will have nothing
more to pay.
- If you want to keep the vehicle, you can simply pay off or
refinance the outstanding balloon payment.
- You can come back to us and part exchange your vehicle for
a new one. If the trade-in value is greater than the GFV, the
difference can be used towards a deposit on the next agreement.
You can sell the vehicle privately and keep any profit over and
above the GFV.
Credit Purchase is structured in the same way as a Personal Contract
Purchase (PCP) in that a capital lump sum amount, known in this
instance as the Residual Value (RV), is deferred to the end of the
agreement. The RV reduces the regular monthly payments and makes
more expensive vehicles far more affordable.
Unlike PCP, Credit Purchase offers no option to return the vehicle
to the finance company at the end of the contract and is a loan
agreement. It is the customers responsibility to settle the final
balloon payment either though additional finance, cash or settlement
by part-exchange.
Credit Purchase repayment periods are restricted to 60 months (5
years) and so is only suitable for customers looking to take out
finance over a long period of time although settlement can be made
at any stage of the agreement. Customers will normally benefit from
lower monthly payments due to the long contract period. In addition,
there is no tie in to a mileage contract, although you will asked
for your annual mileage so that we can estimate a meaningful Residual
Value.
All finance is subject to status – written details
on request
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