When looking for a new or used car, it’s likely that you’ve come across lots of car financing options that can leave you scratching your head and unsure which finance option is right for you - or even whether you should get your car on finance in the first place!
Car finance might not be for everyone, but it does help to spread the cost of a new or used car over monthly repayments, which you agree before signing anything. Dacia offer a range of finance plans to suit individual preferences and circumstances, such as:
Personal Contract Purchase (PCP)
Personal Contract Hire (PCH)
Hire Purchase (HP)
Personal Contract Purchase (PCP)
What is it?
A Personal Contract Purchase is a flexible form of loan where some of the cost is deferred until the
end of the agreement in order to provide you with the benefit of lower monthly payments. The
deferred amount is known as the Optional Final Payment and is sometimes also referred to as the
Guaranteed Future Value (GFV). At the end of the agreement you have three options:
1. Retain the car: simply pay the Optional Final Payment, and the agreement is
complete.
2. Return the car: there’s nothing more to pay if the car is in good condition and
within the agreed mileage terms.
3. Renew the car: choose another car, using any excess part exchange value that is
above the Optional Final Payment towards your deposit.
How does it work?
You will agree an estimated annual mileage and this will be used to
determine the Optional Final Payment
You agree on the amount of deposit, and this figure combined with the
agreement duration and Optional Final Payment will determine the amount of your monthly payment
You sign the agreement, pay the deposit and then make the monthly
payments
The interest rate is fixed which means you’ll know exactly how much you
will repay throughout the term of the agreement
At the end of the agreement we’ll write to remind you of the three
available options
You decide which option is best for you. Your dealer may be able to
help if you decide to part exchange the car
Features & Benefits
A fixed monthly payment, allowing you to budget with
confidence
Potentially lower payments than Purchase Plan agreement
Variety of options available at end of the agreement
You can match the length of your agreement with the time you
want to keep the vehicle
You will have the right to terminate the agreement early
(under a Voluntary Termination through the Consumer Credit Act 1974)
Important Information
At the end of your agreement you have three options:
If you fancy a change you can simply part exchange your car for a different make/model on a new Solutions contract
If you love your car you can pay the option to purchase fee and the optional final payment then take full ownership of the vehicle
If you don't want to upgrade or keep it, as long as it's been loved, you can simply give it back. (fees may be payable)
It is important that you keep up to date with your monthly repayments, so please contact your lender if you are having any difficulties as the vehicle maybe at risk if you don’t.
You may end your agreement earlier than the full term. However, depending how far you are in to your agreement will affect the final amount left to pay.
If you exceed agreed mileage at the start of your agreement and intend to return the vehicle then excess mileage charges will apply.
Keep the vehicle in good condition as this will affect the value of the vehicle. You may be charged for any damage that goes beyond fair wear and tear.
PCP may not be suitable if you want to settle the agreement early or if want to own the vehicle at the end of the term and may have difficulty in making the balloon payment. Smaller deposits work better with a PCP.
Personal Contract Hire (PCH)
What is it?
Personal Contract Hire is the choice favoured by most people who would prefer to use a vehicle,
rather than own one.
You simply choose a vehicle for an agreed period up to 60 months in exchange for a fixed monthly
rental.
There are no depreciation or vehicle disposal worries since you just return the vehicle at the end of
the contract.
Fixed price servicing and maintenance options are usually available with most contracts for an
additional cost.
Personal Contract Hire is the ultimate in hassle-free motoring.
How does it work?
A Personal Contract Hire agreement can be structured to meet your needs
based on the car, estimated annual mileage, the agreement duration and any additional services you
require
You may pay an initial rental that can be tailored to suit your
requirements (The greater the initial rental, the lower your regular rentals will be)
At the end of the contract you simply return the vehicle
Features & Benefits
You pay a fixed monthly rental for the duration of the
contract – subject to tax and Road Fund Licence charges
The contract is flexible to meet the rental period and
mileage that suits you
Your monthly rental can also include servicing, maintenance
and repair, for an additional cost
Important Information
Ownership of the vehicle will always remain with owner and it is really important that you keep up to date with your monthly repayments.
Please contact the hire company if you are having any difficulties as the vehicle may be at risk if you don’t.
Contract Hire agreements are not designed to be settled early. If you wish to end your agreement early you can request an early termination quote to cover the cost of the remaining rentals.
If you exceed the agreed mileage set out in your agreement then excess mileage charges will apply. If during your agreement you think you will go over your anticipated mileage then please contact the hire company to discuss the options available.
It is important to keep your vehicle in good condition as you may be charged for any damage that goes beyond fair wear and tear.
PCH is not suitable if you want to own the vehicle at the end of the agreement.
Hire Purchase (HP)
What is it?
Hire Purchase is a car finance agreement that allows you to spread the cost of buying a car over a period of time, and own the vehicle at the end of the agreement. Ultimately, this means getting a car is more affordable as you can spread the cost of your car over a longer period of time.
With our hire purchase arrangements, you’ll pay a fixed monthly cost for your Dacia. You'll have flexibility in the amount you pay each month, depending on how much you decide to pay up front, the length of the agreement and the type of Dacia you choose. It's also worth bearing in mind that credit is subject to status.
How does it work?
You choose your deposit amount at the beginning of the agreement, and then pay equal monthly repayments with a fixed interest rate, over your chosen period. After you’ve made all the repayments including any interest, you will become the owner of the vehicle
Depending on your credit status, you can:
Borrow any amount from £3,000 for new vehicles and from £2,000 on used
Repay over 1-5 years depending upon the age of your vehicle
Decide on the deposit you would like to pay (no deposit may be available, subject to status)
Features & Benefits
Flexible deposit options
Fixed interest rate and monthly repayments (including any interest) over your chosen period (1-5 years)
Fixed monthly repayments to suit your budget
You won’t be restrained to a certain mileage
Choose any new or used car as long as the car is less than 14 years old at the end of the agreement
Important Information
Ownership of the vehicle will remain with your lender until you have paid both the option to purchase fee and all monthly payments.
It is really important that you keep up to date with your monthly repayments so please contact your lender if you are having any difficulties as the vehicle may be at risk if you don’t.
Michael Jeffery Limited is authorised and regulated by the Financial Conduct Authority. FRN: 688200. We are a
Credit Broker not a Lender and can introduce you to a limited number of lenders.
We typically receive a fixed commission calculated by reference to the vehicle model or amount you borrow, for
introducing you to a lender but this does not affect the interest charged on the agreement, all of which are
set by the lender. Our manufacturer support finance companies also provide preferential rates to us for the
funding of our vehicle stock. Michael Jeffery Ltd is an Appointed Representative of AutoProtect (MBI) Limited
for General Insurance distribution purposes which is authorised and regulated by the Financial Conduct
Authority for Insurance Distribution Activity (Firm Reference Number 312413). You can check this on the FCA
Register by visiting the www.fca.org.uk
At Ponthir Road Service Station our focus, as always, is on the health and safety of our associates,
customers and communities we serve. Our hearts go out to all those impacted by COVID-19.
Our dealerships are fully operational and remain open. Each facility is cleaned and sanitised regularly and
we have implemented additional safety practices to minimise health risks when purchasing and/or servicing your
vehicle. In light of the ongoing Coronavirus developments, we will continue to evaluate our policies and
procedures and will adjust as needed in order to ensure the safety of all those who do business with us.
We realise the impact that the coronavirus may have on your willingness to visit one of our dealerships. We
want to do our part to keep your lives as normal as possible and with that in mind, we want to offer our “we
come to you” option. What this means is that where available we will deliver your newly purchased and fully
cleaned vehicle to your home.
We want to not only keep your life from being disrupted, we want to allow you to get some of the things you
don’t always have the time to get done. Things like getting certain services to your vehicle done while you
are following the government’s Public Health advice and working from home. Where available we will come to you
and pick-up and drop off your vehicle, freshly cleaned and serviced.
There is no question this is a time of great uncertainty, but we commit to you, our customers to being
transparent and operating our businesses as normal while keeping health and safety top of mind. While we don't
know exactly what the future may hold, we feel confident that by supporting each other we will emerge from
this stronger than before.
Thank you for allowing us to continue serving you.
Caerleon branch