Now there are more ways to get financed prestige car, besides hire purchase, personal contract hire, personal contract leasing and lease purchasing. Following are the ways, which may help you in getting your prestige car financed.
Bank loans alternative is hire purchase and is often used in case of financing your prestige car. You pay the financing company after the financing company pays to the dealer. Installments may be divided up to 60 months. Monthly payments are not supported by VAT. After final payment car is yours.
Personal contract hire:
This is a way of leasing a car over a set time period. Company sets the annual mileage of 10,000 per year, but by increasing monthly payment, mileage can be increased. In monthly payment, maintenance may be incorporated. Personal contract hire and contract hire leasing system is similar to some extent. As it is lease, so you cannot own car. Advantage is that company bears some expanses as depreciation in case of lease. Prestige brands are able to hold their cost in better way than simple cars. Personal contract hire makes prestige brand affordable when you use this way as compared to bank loan. In personal contract hire deposit and monthly payment is smaller than hire purchase. If car breaks down even in this case cost will not be high for working.
Personal contract means of purchase:
Lower payments are the main feature of personal contract means of purchase as compared to personal hire. The monthly payments are lower because of GFV, which clearly states that what the car will be value at the conclusion of the concerned lease phase. Personal contract purchasing helps in saving money. It is indeed helpful in providing peaceful state of mind. However, depreciation is considered in this because it helps to determine GFV. Any car which is depreciated will have less worth and so GFV at the conclusion of period of lease. Three options are given at the finish of lease period:
* Return car to lease company
* Purchase car at GFV
* Part exchanges the prestige car.
Third option is famous choice because it allows fair play (what the car is worth) used against other car.
Lease purchasing is only related to a means of hire purchasing but the final payment that will be paid is normally a large amount. This is otherwise called as balloon payment; funds are normally kept to pay off such balloon payments.