Funding Methods

We are committed to complete customer satisfaction and offer a wide selection of affordable and flexible business and fleet finance solutions.

Our expertise and product knowledge enables us to deliver the most effective vehicle funding solutions for your business.

Contract Hire

For VAT registered companies, a Contract Hire plan is the smart way to lease a brand new vehicle from Jemca Car Group.

It gives you straightforward and attractive options to keep your business moving with the choice of maintained or non-maintained plans.

VAT registered companies can offset 50% of the VAT on the finance element of the rentals. 100% of the VAT can be offset on the service element.

Tax advantages and reduced administration help businesses to budget
more accurately for their vehicle requirements.

Hire Purchase

Otherwise known as HP, this is a popular method of funding your vehicle. Similar in many ways to a personal loan, HP allows you to spread the cost
of the vehicle over an agreed period of time.

Your payments are usually fixed for the term of the agreement.

At the end of the agreement, you will take ownership of the vehicle.
Early settlement is also possible.

PCP

Otherwise known as Personal Contract Purchase, PCP is a very effective
way of reducing the monthly payments on your new vehicle.

A percentage of the cash price of the vehicle (known as the 'Residual Value') is offset until the end of the agreement, which reduces the monthly payments as compared to a HP or personal loan agreement of the same duration.

PCP agreements can be tailored to suit your annual mileage and should ideally reflect the period of time you wish to keep the vehicle.

Lease Purchase

Otherwise known as LP, is the same as PCP but the final payment is not guaranteed. With Lease Purchase, you choose an amount to defer to the end of the agreement. This has the effect of lowering the monthly payments or shortening the agreement period.

The benefit is cheaper payments than HP and PCP, as there is no risk to
the finance company as the final payment is settled by the customer.

Finance Leasing

Finance leasing is another cost effective option offering useful tax advantages – particularly for VAT registered businesses.

It allows you to share in the profit (or loss) made on the sale of the car
at the end of the agreement.

There are two kinds of Finance Leasing:
Full payout lease - which allows you to spread the cost of the vehicle
over the period chosen.
Balloon Lease - where you offset an amount to the end of the
agreement to lower the payments.

Residual Value

Also known as an 'RV', it is the amount of vehicle cash price that is offset until the end of a PCP agreement.

The size of the RV is dictated by the length of PCP agreement and the annual mileage you choose.As a rule, the RV will be larger if your chosen annual mileage is lower.

An important point to remember is that the RV is guaranteed by the finance Lender - providing you stick to the annual mileage you set at the beginning of the PCP agreement.

Term

This is the term (expressed in months) of your chosen finance agreement with us.

Deposit

The amount of initial deposit you pay prior to the commencement of your finance agreement.

This figure can consist of the value of the existing vehicle (should you have one to part exchange) as well as any additional cash deposit you may wish to put down.

Annual Mileage

Refers to the number of miles you would expect to drive per year.

APR

This figure is expressed as a percentage, and is designed to provide an overall comparison between finance deals.

It is influenced by factors such as the length of the agreement and amount of initial deposit. Whereas the APR figure is important, it should not be your only focus.

For instance, the APR figure on a PCP agreement may be slightly higher than a HP agreement (due to the Residual Value figure at the end of a PCP agreement) but the monthly payments will be lower on a PCP agreement.

This lower payment increases the affordability of more vehicles in stock.

Contact one of our business managers today to find out how choosing the right funding method through Jemca Car Group can add value to your business.