Finance Enquires

Premier Ford: Isle Of Wight

Do you have a question about financing your next car or van? We appreciate that financing is something many customers are concerned about when looking to buy a new vehicle and we are always happy to talk about the different finance options available.

Please fill out the contact form and we will be in contact shortly. Alternatively you can take a look through the different options below.

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Personal Contract Purchase

Personal Contract Purchase (PCP) is an increasingly popular choice for car finance. It offers the best in flexibility at the end of the agreement, together with low, fixed monthly payments.

PCP is perfect if you are opting out of your company car scheme. Your company car allowance can fund your monthly payments, but there is no company car tax to pay.

At the beginning of the agreement your car's guaranteed future value is calculated, based on an agreed mileage and age. This is deferred as a final 'balloon' payment.

  • You have four options:
  • Buy the car by paying an agreed minimum residual value
  • Part-exchange the vehicle for another
  • Sell the vehicle privately (settling the balloon)
  • Or, subject to mileage and condition, return the car with nothing more to pay (e.g. if depreciation resulted in negative equity)

The benefits of Personal Contract Purchase

  • Low risk - A minimum future value is guaranteed
  • Low deposit - keeps valuable personal or business cash available
  • Low fixed monthly payments - perfect for budgeting
  • Choice - Buy the car, part-exchange it or just return it
  • A better car - lower payments can help you choose a higher specification car
  • Tax advantage - the cash alternative when you opt out of a company car scheme is not subject to company car tax
  • VAT free - no VAT on your payments

Hire Purchase

If you choose to buy a vehicle under Hire Purchase (HP) you enter a contract where you would pay for the vehicle in parts. This is calculated by the value of the vehicle along with the interest added and divided into pre-determined amounts. It is different to a traditional loan, this is because you do not own the vehicle until the the loan has been paid off. The debt is secured against the vehicle, this means you are not allowed to sell it until the debt has been cleared.

This means you are borrowing money for the vehicle and the loan is secured against it. When you have paid all the finance owed, the car is yours.

Is it suitable for you? HP car finance would be a suitable option for you when you know you’ll be keeping the vehicle for a while.

The benefits of Hire Purchase

  • Low deposit - keeps valuable personal or business cash available
  • Control - you decide the deposit, you decide the term
  • Fixed monthly payment - makes budgeting simple
  • Flexibility - doesn't compromise your other lines of credit
  • Assets - you gain ownership of the car
  • Tax benefits - Tax allowances for business users
  • VAT free - no VAT on payments
Free & Fast Free Valuation When selling or part-exchanging, it is essential to know what your vehicle is worth in order to get the best price.