Financing

Looking to finance your next vehicle? Contact us for info on available options. We prioritise fair treatment, helping you understand finance choices and maintaining relationships with financing companies.

At P McKenna Motors we not only understand the importance of treating our customers fairly, but we want to ensure they are treated fairly & transparently. We have continuously implemented this strategy into every customer interaction we have ever had and are happy to answer any questions, provide no obligation quotes and assure you there is never any pressure to take finance as part of the car sale transaction.

Part of that fair treatment is helping YOU the customer understand all the finance options that are available to you from both us acting as brokers for various finance companies and also to make you aware that there are other alternative avenues to seek finance options apart from through the companies we work with.

We work hard to maintain relationships with various motor financing companies so that what we can offer you a variety of options best suited to your budget & needs. You do not pay us for this service, but we do receive a commission payment which will be disclosed in detail on presentation of any finance quotes you request from us and before any deal is concluded.

You can also have a look at the following informative videos provided by V12 Finance – one of our financing partners, which explain further the kinds of finance that we can offer as finance brokers.

It is not every day you change your car and we understand this can be an unknown process for most with a lot of jargon thrown in along the way so let us keep you informed by providing explanations of some of the terms you will come across in the process;

Videos

Financial Terms

PCP Personal Contract Purchase

Personal Contract Purchase (PCP) entails a hire purchase agreement with an optional “balloon” payment at its conclusion. This final sum reflects the car’s anticipated residual value, determined by its age and projected mileage.

PCP typically offers lower monthly repayments compared to a similar Hire Purchase (HP) agreement due to the deferred payment. While ownership of the vehicle requires settling this future value, opting out is possible by returning the keys and initiating a new agreement for another vehicle.

Balloon Payment

A balloon payment constitutes a significant final installment of a loan, exceeding regular payments. Typically, it’s due at the end of the loan term, following periods of interest-only or minimal principal repayment.

In Lease Purchase agreements, the balloon payment is mandatory. Conversely, with PCP, you have alternatives, one of which includes settling the balloon payment to gain ownership of the vehicle.

Flat Rate

The flat rate interest is the fundamental interest rate applied to the finance agreement, excluding additional charges such as setup fees. For more precise comparisons, the APR provides a more comprehensive assessment.

Hire Purchase

When entering into an HP agreement, you provide an initial deposit followed by consistent monthly payments over a predetermined number of months. The term can range from 24 to 60 months, contingent upon the age and mileage of the vehicle.

APR Annual percentage rate

APR stands for Annual Percentage Rate. It represents the annual interest rate on borrowed funds, encompassing standard fees and charges associated with the credit offer.

For instance, borrowing £1000 with an APR of 10% would result in a total repayment of £1100.

GFV Guaranteed Future Value

GFV stands for Guaranteed Future Value, a term commonly used in car finance to denote a vehicle’s residual worth at the conclusion of a PCP (Personal Contract Purchase) agreement. It signifies the sum required for purchasing the car outright once the contract concludes.

For instance, if you purchase a car valued at £20,000 through a PCP arrangement with a GFV of £10,000, your monthly installments will be based on the disparity (£10,000). Subsequently, at the contract’s end, you have the option to pay the GFV (£10,000) to obtain ownership of the vehicle.