WHAT IS CAR FINANCE?
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. Suzuki offer a range of finance plans to suit individual preferences and circumstances, such as:
PERSONAL CONTRACT PURCHASE (PCP):
Personal Contract Purchase is a Suzuki Finance that can help you buy your dream car with lower monthly repayments than a Hire Purchase product. This is because a large proportion of the amount you repay is deferred into an optional final repayment.
The main difference with Personal Contract Purchase, is the option to choose what you do at the end of the agreement. You can part exchange the vehicle, return the vehicle (return conditions apply), or pay the optional final repayment and own the vehicle.
PERSONAL CONTRACT HIRE (PCH):
Personal Contract Hire is a fixed cost rental agreement.
You first choose your new Suzuki car, pay an initial rental in advance, followed by fixed monthly rentals to suit your budget. You can even choose an optional maintenance package as part of your agreement which can help take away the hassle of keeping your vehicle in good condition.
It’s different from Personal Contract Purchase (PCP) because there is no option to purchase the car at the end of the agreement and the vehicle must be returned.
Hire Purchase is one of the finance products offered by Suzuki Finance to help spread the cost of buying a car. It’s a great choice if you want to own your car at the end of the agreement.
Suzuki Finance owns the vehicle for the duration of the finance agreement. You will become the owner of the vehicle after all the repayments including any interest has been paid.
CAR FINANCE AND OWNERSHIP
Each of these products works a little differently, but put simply, Suzuki Finance buys the car on your behalf and owns the car for the duration of the finance agreement. With PCP & HP you’ll then have the option to become the owner of the vehicle after all the repayments including any interest have been made.
When you purchase a car on finance, Suzuki Finance will buy the car on your behalf and will own the car for the duration of the finance agreement. This means that if you’ve chosen a Personal Contract Purchase (PCP) or Hire Purchase, your vehicle will be owned by Suzuki Finance until the final repayment including any interest has been made - and after that, you will become the owner of the vehicle!
It’s worth noting that this differs for PCH where at the end of your agreement you must return the vehicle as there is no ownership option.
This means there are two options if you are looking for car ownership.
Hire Purchase: Own the vehicle once all the repayments, including interest and £10 purchase fee, have been paid.
Personal Contract Purchase: Own the vehicle outright by paying the option final repayment (this will include the £10 purchase fee).
There are two other options at the end of a PCP agreement – for more information on these please see our PCP guide.
HOW CAR FINANCE DEPOSITS WORK
When you make the decision to finance any product that has a high monetary value, whether that’s a car, or a piece of furniture for example, you might be asked to put a deposit down. This deposit secures the item to be sold to you and not another person - and it also helps to lower the total cost of what you pay per month on your finance agreement.
You’ll agree with your dealer an initial deposit, as well as your agreement term and monthly repayments. In some instances, Suzuki Finance can offer zero deposit options, which can be helpful if you have limited savings when you’re looking to purchase a new or used car.
CAR FINANCE AND CREDIT RATING
If you choose to purchase a Suzuki vehicle on either HP or PCP, your dealer will run a quick few credit checks with you. We do this to make sure that you’d be able to reasonably afford to make repayments on your car.
Details of your credit agreement will be recorded with credit reference agencies:
HP agreements are recorded as unsecured lending products in line with industry practice.
PCP agreements are also recorded as unsecured lending products with the final repayment amount also being included in the total outstanding balance recorded with the credit reference agencies.
Should you choose the option to return the vehicle at the end of your agreement, the outstanding balance will be adjusted to reflect that the optional final repayment is no longer due.
If you are struggling to make repayments on your car finance plan, it’s best to speak to our Suzuki Finance team as soon as possible - they’ll be able to help discuss your options. If you do fail to maintain contractual repayments, the vehicle is at risk of repossession.
Terms and conditions:
Hire Purchase (HP)
Finance is available to UK residents aged 18 years or over, subject to status. Suzuki Finance is a trading style of Suzuki Financial Services Limited, part of Lloyds Banking Group, St William House, Tresillian Terrace, Cardiff, CF10 5BH.
Personal Contract Hire (PCH)
Personal Contract Hire is provided subject to status by Suzuki Personal Contract Hire, which is a trading style of Lex Autolease Limited. Registered office: 25 Gresham Street, London EC2V 7HN. Applicants must be over 18 and a UK resident. Ownership of the vehicle remains with Lex Autolease Limited and the vehicle must be handed back at the end of the term. Return and mileage conditions apply.
Personal Contract Purchase (PCP)
Credit is available to UK residents aged 18 years or over, subject to status. If finance is needed when making a part exchange, you will need to enter into a new agreement (subject to status). Under the goods return option, you will have to make additional payments if the car is not in good condition for its age and mileage, or if the car has exceeded its allowed mileage. Suzuki Finance is a trading style of Suzuki Financial Services Limited, part of Lloyds Banking Group, St William House, Tresillian Terrace, Cardiff, CF10 5BH.
Please contact us if you require additional information.