Buying a car, new or used, doesn’t have to be a financial burden anymore – at Station Garage Mitsubishi, our finance experts will help you draft up the ideal plan that is suited for your requirements. Each of our Mitsubishi Finance contracts is tailored to you and ensure that you will be in control of your spending.
The type of finance contracts that we offer include Hire Purchase (HP), Personal Contract Plan (PCP) and Personal Contract Hire (PCH). Each one of them appeals to different people and differ regarding the deposit and regular payment amount, as well as period.
A key characteristic of our finance offers is flexibility – paying for your car can be as easy as paying any other bill. If you wish to enquire more about our finance options and services, as well as our attractive offers, contact us today through our website or by phone and we will discuss the best plan for you.
A Personal Contract Purchase (PCP) plan will enable you to purchase your next car with lower monthly repayments. The way this is achieved is 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). The Guaranteed Future Value plus your deposit is subtracted from the cash price of the vehicle and your monthly payments are based on the balance (plus 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.
At the end of the contract you have four options: You can return the vehicle to the finance company. As long as you have not exceeded the agreed mileage, you will have nothing more to pay. If you want to keep the vehicle, you can simply pay off or refinance the outstanding balloon payment.
You can come back to us and part exchange your vehicle for a new one. If the trade-in value is greater than the GFV, the difference can be used towards a deposit on the next agreement. You can sell the vehicle privately and keep any profit over and above the GFV.
Hire Purchase (HP) is very similar to borrowing a sum of 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 are often preferred over alternative (unsecured) loans because they allow a greater borrowing limit. The term "secured loan" means exactly that, 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
Personal Contract hire is a fixed-cost, rental agreement. You choose a new vehicle, agree the maximum annual mileage and length of agreement, and then pay an initial rental followed by fixed monthly rentals to suit your budget. You can even choose to cover vehicle maintenance costs as part of your agreement subject to paying a maintenance charge which is added to your monthly rental.