Finance and Personal Loans
UK (Advice) - Page
Series Land Rovers have a wide range of values as their condition
can vary a lot. It's therefore not easy to get a finance company to fund your
purchase. If you can find one, they will usually require you to take out fully
comprehensive insurance. Remember the vehicle belongs to the finance company
until you finish paying back the loan.
An easier option is to go for a personal loan. If you choose
a personal loan which allows you to settle the re-payment early, you should
check that this is not costing you more than paying over a longer term.
A Glossary of Financial Terms
You can get these from a wide range of sources.
Your previous financial background, age, salary or whether you are a property
owner can all have a baring on your eligibility. You may need to shop around
to find a loan if some of your circumstances are restricting. Generally,
the more restrictions, the more costly the loan. Be careful. The advantage
is that if you fail on payments the vehicle is still yours - but the re-payments
have to be found from somewhere.
This is the annual rate of interest you pay on the loan. A large loan attracts lower APR. Shop around for the best deal.
Buying a vehicle through a dealer will often provide you
with this option. About 10% deposit and payments at an agreed rate of interest
over 1-5 years is most common. The dealer owns the car until you pay the
final "option to purchase fee". Not easy to shop around unless
you're in reach of a lot of dealers.
- Personal Contract Plan (PCP)
With this plan you are essentially hiring the
vehicle with low monthly payments after paying an inital deposit. You agree
a GFV (Guaranteed Future Value) for the vehicle over 24-42 months, which will
depend upon an agreed annual mileage. After the agreed period you have the
option of either to buy it for the GFV OR return it and pay nothing more.
- "Halves" and "Thirds"
Once you have completed one third of the
payments, a finance company cannot repossess your vehicle without a court
Once you have completed half of the payments under a HP or PCP agreement you
have the option to terminate the agreement - provided the vehicle is in reasonable
condition and no arrears are owed. This would not affect your personal credit
rating for future financial agreements and loans.
- Payment Protection
It is a requirement of The Finance
and Leasing Association's code of practise that you should be informed of
the ability to protect your payments. You can protect your payments in the
event of losing income due to various causes. You can purchase cover for life;
life, accident and sickness; or life, accident and sickness and unemployment.
Check that you don't already have cover from an existing policy. Cover can
be upto 20% of monthly payments.
- Gap Protection
In the event of a vehicle write-off you can protect yourself
to cover a possible gap in the amount paid out by insurance and the amount
still owed in HP payments. High mileage and low deposits could cause you to
seriously consider this option.