New Car Finance

New Car Finance

At T W White & Sons, we are here to help and assist you in making your new car purchase as easy, enjoyable and straightforward as possible. We are able to offer a range of simple and flexible finance options, so you can focus on getting behind the wheel of your new car!

Personal Contract Purchase (PCP) is a popular form of car financing that offers lots of flexibility when purchasing a new Mazda or Suzuki.

Here’s how PCP works:

Deposit: You (usually) start by paying a deposit on the car. The larger the deposit, the lower your monthly payments will be. Sometimes, Mazda or Suzuki offer finance campaigns with £0 deposit, or offer generous deposit contributions, and if you have a vehicle to part exchange this can also form part or all of your deposit.

Monthly Payments: After the initial deposit, you commit to make fixed monthly payments over a specified contract term, usually 2 to 4 years. These payments cover the depreciation of the car’s value over the contract period, plus any interest.

Guaranteed Future Value (GFV): At the beginning of the PCP agreement, the lender will give you a guaranteed minimum value for the car at the end of the contract, known as the Guaranteed Future Value (GFV) or Optional Final Payment (OFP). This value is based on factors like the car’s make, model, mileage you plan to cover each year, and condition. It’s essentially a prediction of what the car will be worth at the end of the agreement.

At the end of the contract you have 3 options:

  1. Buy the car: You will have the option to purchase the car outright by paying the Optional Final Payment.
  2. Return the Car: If you don’t want to keep the car, you can return it. You usually won’t owe any additional money unless there’s excess wear and tear/damage or you have exceeded you agreed annual mileage.
  3. Renew the car: You can use any equity you may have in the car (if the current value is higher than the GFV) as a deposit for a new PCP agreement on another vehicle. You can trade your car in (or sell your car privately) at any stage in your contract if you chose to settle the finance in full.

Another common way of financing a new car, both Mazda and Suzuki offer Conditional Sale. A conditional sale agreement spreads the whole cost of purchasing a vehicle over a set period of time. Similar to a PCP, you will pay a deposit up front, and then the remaining balance will be split into monthly payments. Again, you can chose the length of agreement to suit you and your financial situation – the longer term you chose, the lower the monthly payments.

At the end of the agreement there are 3 options:

  1. Pay off the deferred amount in full and keep the car
  2. Hand the car back to the dealership
  3. Trade the car in and renew into another new or used vehicle.

Personal Contract Hire (PCH) is a type of car financing that allows you to lease a new Mazda or Suzuki for a fixed period, typically 2 to 4 years.

How does PCH work?

Initial Payment: You start by making an initial payment, often equivalent to several months’ worth of lease payments. This payment is also referred to as the “initial rental” or “upfront payment.” The higher the initial payment, the lower your monthly lease payments will be.

Monthly Payments: After the initial payment, you make fixed monthly lease payments for the duration of the set contract term contract. These payments cover the depreciation of the car’s value over the lease term, plus any finance charges.

At the end of the agreed contract term, you simply hand the car back.