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Email: sales@goddardsauto.co.uk
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Our Finance Plans Explained

We provide an excellent range of finance plans which are totally flexible to help match your needs which are subject to credit status. 

Once you have found an option that best suits your needs, you can complete an online application form featured next to our cars which will pass your information directly to our finance team. One of our representatives will call you prior to your application being officially proposed to ensure you understand the process and to also answer any further questions you may have.

We normally obtain a decision within 30 minutes of the application being proposed and all the relevant paperwork will be in place and ready to sign. Please find below further information and video presentations explaining each finance product in greater detail.

Apply online today

Personal Contract Purchase

A Personal Contract Purchase (PCP) plan will enable you to purchase your next car with lower monthly repayments. This plan works by deferring an amount of the total cost of the vehicle to the end of the contract. This amount is known as the Guaranteed Future Value (GFV) or balloon.

The GFV plus your deposit is subtracted from the cash price of the vehicle and your monthly payments are based on the balance plus any interest on the balance and the GFV.

By only repaying the difference between the cash price and the optional balloon payment you are only financing the depreciation of the car.

Hire Purchase

Hire Purchase (HP) is similar to borrowing money from a bank and paying it back over a fixed period of time, with interest. Hire Purchase is a type of secured loan which is often preferred over alternative (unsecured) loans because it allows a greater borrowing limit. The term "secured loan" means a loan that the lender can secure against an asset (in this case, the vehicle). HP gives you additional rights over those of a personal loan and is only available through dealers that have passed the stringent approval process of the finance companies.

Lease Purchase

Lease purchase (LP) will enable you to purchase your next car with lower monthly repayments. This is achieved is by deferring an amount of the total cost of the vehicle to the end of the agreement. This amount is known as the Residual Value (RV) or balloon.

The RV is calculated by the finance company using future industry data which should ensure that the RV is greater than what the vehicle is worth allowing you to settle the final payment either though additional finance, cash or settlement by part-exchange.

On a lease purchase the RV is not guaranteed by the finance company to be greater than the value of the car.

 

Why Apply Online?

 

  • When applying for finance through our website you are in no way obliged to buy the vehicle, but by applying you register an interest in the vehicle
  • You can submit your details at any time 24 hours a day, 7 days a week
  • By arranging your finance in advance direct with Goddards, it makes the whole buying process very simple knowing the finance is in place and ready to go
  • Your details are fully confidential without the need to disclose any personal details
  • Our service is provided by a completely secure server so your details are totally safe.
  • To enquire about Finance for a car please Click Here

 

Glossary of Terms

 

  • Hire Purchase (HP) - Similar to borrowing money from a bank and paying it back over a fixed period of time, with interest.
  • Lease Purchase (LP) - Enables you to purchase your next car with lower monthly repayments. This is achieved is by deferring an amount of the total cost of the vehicle to the end of the agreement
  • Residual value (RV) - Same meaning as balloon which is the value of your car at the end of the finance agreement, after a certain time and mileage. It may or may not be guaranteed, depending on the terms of your agreement
  • Balloon Payment - Same meaning as residual value (RV) which is a one-off payment made by you at the end of some finance agreements. It will reduce your monthly payments
  • Guaranteed Future Value (GFV) - it is the lowest amount that your car is guaranteed to be worth at the end of a contract purchase deal and will usually be the same as the deferred amount on the finance
  • Flat rate - the base interest rate charged on the finance. Dealers will sometimes quote a monthly or annual flat rate but you should ask for the APR, which more accurately describes the true cost of the finance
  • Total amount payable - the total cost of the finance, including any interest or other charges, if you repay the finance over the agreed period. This is a good way to compare the actual cost of various types of motor finance
  • APR (Annual percentage rate) - a standard method of calculating the full cost of the interest and other charges on the finance. You should use the APR to compare the cost of different finance options, although lease agreements will not show an APR
  • Credit Rating - a scoring system used by finance companies to help decide how much finance to make available to you