Car Finance
TLA Finance can advise on the different options available for Car Finance:
Hire Purchase (HP)
Hire Purchase is the longest standing, most established vehicle financing method available. Over an agreed term, the customer will repay the capital cost of their vehicle in monthly instalments along with interest incurred.
Personal Contract Purchase (PCP)
Due to the flexibility and low monthly payments, PCP has rapidly become the most popular way in which to finance cars. The customer pays an initial deposit, followed by a series of monthly payments and at the end of the term the customer then has the option to make a final lump sum payment in order to own the car, or to merely return the car with no further obligations.
Contract Hire (CP)
Contract Hire is essentially a long term car rental contract paid on a monthly basis over an agreed term; usually 2, 3 or 4 years. Contract hiring a vehicle can offer both non-maintenance and full maintenance contracts. A full maintenance contract is where the finance provider is responsible for maintaining and servicing the vehicle and includes all costs due to fair wear and tear.
Lease Purchase (LP)
Lease Purchase is structured in the same way as a Personal Contract Purchase (PCP) in that a capital lump sum amount, known as the Residual Value (RV), is deferred to the end of the agreement. However, unlike PCP, Lease Purchase offers no option to return the vehicle to the finance company at the end of the contract. It is the customers' responsibility to settle the final balloon payment either though additional finance, or cash settlement.
Our advisors are on hand to help you select the best option.