Choosing to purchase your Skoda on finance has become very popular in recent years. It makes buying a new or used Skoda not only more affordable but more manageable. With a wide variety of finance options available, we can work with you to find the perfect solution to suit your financial situation.
There are three ways in which you can finance your next car with us
Solutions Personal Contract Plan (PCP)
Solutions Personal Contract Plan agreements are becoming an ever more popular way to finance your new or used Skoda as generally they enable you to purchase a newer, more expensive vehicle with a lower monthly payment than other loans. Based on the age and mileage of the vehicle you’d like to purchase, and an agreed term and annual mileage, the finance company will calculate a guaranteed minimum future value – this figure will be the final payment of your agreement.
Just like HP (Hire Purchase) you can choose the deposit amount (however sometimes there may be a maximum deposit percentage) and agreement term which usually ranges from 24 up to 48 months and at the end of the agreement you have 3 choices:
- 1. Retain – Pay the GMFV (Final Payment) – you now own the vehicle
- 2. Return – Return the vehicle back to the finance company and walk away (Terms and Conditions apply with regards to mileage and condition when returned)
- 3. Part exchange the vehicle and settle your agreement using any equity that is left in your current vehicle as a deposit towards your new vehicle
Just some of the benefits of PCP
- Tailored Deposits which can utilise either cash and/or your part exchange
- Fixed Interest Rate
- The monthly payments can often come out lower than HP and personal loan
- Very Flexible giving you 3 Options at the end of agreement: retain, return, renew.
Hire Purchase (HP)
Hire Purchase has predominantly been the most commonly used form of vehicle finance- you can choose the amount of deposit you’d like to pay or even use your current part exchange and the balance is then equally spread over an agreed period which usually ranges between 12 and 60 months. Subject to availability and status, HP can be available with zero deposit. With Hire Purchase there are no mileage limits and at the end of the agreement, you own the vehicle.
Just some of the benefits of HP
- Fixed Interest Rate
- Flexible Payment Terms over 12 – 60 months
- Tailored Deposit either cash and/or part exchange
- You will own the vehicle after the last monthly payment is made
Contract Hire (CH)
Contract Hire is more of a fixed-cost rental agreement. Similar to a PCP agreement you can specify your initial payment. You can then choose the length of the fixed term which can usually range from 24 to 48 Months as well as an annual mileage restriction. Once all the rentals payments have been made and the term is completed you then hand the vehicle back.
Just some of the benefits of CH
- Flexible Initial Payments available
- You only pay for the use of the vehicle
- At the end of your contract simply hand the vehicle back
- Option of including maintenance with the contract
- No depreciation or disposal risk