Finance
Here at GR8 New Car we can offer the finance package that best suits your needs. Choose from Contract Hire, Personal Contract Hire, Personal Contract Purchase (PCP), Lease Purchase, Short Term Contract Hire, Finance Lease, Non Status Lease, Sale and Lease Back, or Daily Rental.
Below is a summary of each of these types of finance with more detail on the following pages:
Contract Hire
Basically contract hire means agreeing to take control of a car for a fixed period – it's yours to drive but it is never actually yours to own. Instead you reach an agreement with the leasing company to make fixed payments (usually monthly) for the duration of the contractual period. At the end of the contract you return the car to the contract hire company...
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Personal Contract Hire
Personal contract hire is essentially the same as regular contract hire, but it applies exclusively to private individuals. It is the most common form of car leasing and usually when the term 'car leasing' is referred to, most people are talking about personal contract hire...
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Personal Contract Purchase (PCP)
Broadly, personal contract purchase is the same as a personal contract hire agreement – but with one key difference. At the end of the contract, there is an optional balloon payment that the individual can choose to pay in order to take ownership of the vehicle. However, it is not essential – on the contrary you could choose to return the car to the leasing company and walk away...
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Lease Purchase
Broadly lease purchase is the same as PCP in that the leasing company has a retail value of the car and works out an estimated future value of the vehicle for the end of the contractual period based on its depreciation. This is known as the residual value...
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Short Term Contract Hire
Short-term car leasing fills the void in the market between daily rentals and traditional car leasing. The average length of a short-term car leasing deal is three-12 months, though some companies do offer rolling contracts for as little as 28 days...
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Finance Lease
A finance lease is a VAT-free method of financing a vehicle that is usually accessed by VAT-registered businesses and companies. It is offered to businesses where a moveable asset (the vehicle) is purchased from a supplier – your business can then use this asset while paying an effective rental rather than a repayment...
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Non Status Lease
Non status car leasing is arguably the most rapidly expanding sector of the contract hire and leasing industry, which in turn is widely recognised as becoming the most popular method of acquiring new vehicles. Both private individuals and business users can increasingly find themselves in the position where for one reason or another they may not meet the strict underwriting criteria of the major leasing companies...
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Sale and Lease Back
If your business is in need of an injection of capital, then sale and leaseback could be a saving grace, providing you are already in ownership of a fleet of vehicles. The process sees you agree a realistic market value with a buyer – usually a leasing company. You then sell the vehicles to the buyer who takes ownership and then leases the fleet back to you...
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Daily Rental
Daily rental broadly works in the same manner as contract hire – but over a much shorter period. Effectively you hire a car on a day-to-day basis dependent on your needs. If you need a car over a longer period you may be charged a monthly fee...
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