Your Guide to Car Finance

If you would like to purchase a new or Approved Used car, but are concerned about the cost, Toomey Basildon can help. Our flexible, low rate finance plans enable you to drive the car of your dreams, without breaking the bank. Instead of a hefty lump sum, our finance deals allow you to make a low deposit at the onset, followed by reasonable monthly payments that work around your income and your lifestyle.

Finance contracts vary in terms of length, cost, and terms and conditions. You may wish to change your model regularly and trade in your car every year or two years, for example. Or, you may want a deal that includes more flexibility and have more say in how much you pay per month. Every car will have a different cost and a different set of prices and contracts available, and at Toomey Basildon, we can help you with any one of your queries. Think of a car on finance like a phone contract – you pay monthly for a better model as buying it outright is too expensive.

There are two main finance programmes available: Personal Contract Purchase (PCP) and Hire Purchase (HP). Deciding on which plan suits you best will depend on your budget, as well as whether or not you want to own the car in the end.

A PCP plan is how most people pay for a car on finance; you pay an affordable deposit and subsequent low monthly payments to drive your car. At the end of the PCP period you have three options:

  • purchase the car with one final ‘balloon payment’ (a larger payment), after which you will fully own the car;
  • return the car to the dealership to end the contract and walk away; or
  • do a part exchange where you return the car and use its value as a deposit on your next car, starting a new contract with the dealership.

The latter is what most people do as it means that you get a brand new car on a regular basis and continue to manage your payments. Keep in mind that cars deplete in value over the years, so you will need to maintain the car’s condition as best you can. You will also have to agree a mileage estimation at the start of your contract and could pay fees if you exceed this. The higher the car’s value at the end of a PCP plan, the greater the sum you will have to use as a deposit towards your next PCP contract.

With an HP plan, you will also pay an initial deposit and monthly payments. These payments may be larger, or the contract may last for a longer period of time. At the end of the HP plan, you officially own the car and have paid it off. It is yours to continue driving, or sell for profit.

Finance programmes with Toomey Basildon help you manage your monthly outgoings more easily. A finance plan is becoming the most popular form of car ownership in the UK as it enables people to more easily purchase a brand new, top-quality model with the latest features. From interior technologies and safety features, to stylish exteriors and remarkable engineering, there are many used models to choose from at Toomey Basildon, including Nissan, Vauxhall, Peugeot, MG and Citroën. New cars are also more efficient and designed to cope with the daily demands of people’s fast paced lives.

Contact Toomey Basildon today for more information on our latest models available on finance, and stay tuned for the release of new models such as the Vauxhall Insignia.

Couple looking at car finance