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. Fiat offer a range of finance plans to suit individual preferences and circumstances, such as:
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.
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
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)
At the end of your agreement you have three options:
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 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.
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
(The greater the initial rental, the lower your regular rentals will be)
At the end of the contract you simply return the vehicle
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
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 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 Fiat. 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 Fiat you choose. It's also worth bearing in mind that credit is subject to status.
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)
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
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