UK Car Discount Delivers 'Transparent' Finance With Santander

MANCHESTER, U.K. - June 10, 2014 - PRLog -- UK Car Discount has partnered with Santander to deliver honest new car finance arrangements. ‘”Our finance plans have no surprises or hidden extras” said MD Brian Bennett. “Many companies are adding document fees at the outset and even fees at the end of the finance arrangement. We strongly advise drivers when taking out a finance agreement to read the fine print and ensure the finance deal they are getting does not hold any unwanted surprises!”

UK Car Discount was founded in 2003 and has established itself as one of the UK’s leading online new car dealers, offering brand new cars at discount prices. To date UK Car Discount has supplied in excess of £100 million in brand new vehicles to satisfied customers. The company ethos is to offer an honest, transparent service, there’s no stereotypical fast talking sales person, we just offer professional advice and let the generous new car deals do the talking for us.

So what types of finance are available and how do they differ?.....

HP (Hire Purchase) - Offers a lot of flexibility. The customer can choose a term usually up to five years and often has the flexibility to pay a bigger initial sum (to reduce monthly payments) and optionally can pay-off the finance early. HP agreements are usually better for those people intending to keep the vehicle for 4/5 years or longer.

PCP (Personal Contract Purchase) - Similar to HP you pay a deposit and agreed monthly payments over a term of three to four years usually. However, the monthly payments are usually lower and/or the term can be less than a HP agreement.

As the monthly instalments of a PCP arrangement are lower you will not pay off the full outstanding balance of the vehicle when the finance term ends and there is an outstanding lump sum required should you wish to purchase the vehicle outright called the GMFV (Guaranteed Minimum Future Value). The finance company guarantees the vehicle will be worth this given it is in good condition. The alternative options is to give the car back and if required take out a new PCP contract and new car.

PCP arrangements usually work best for those who want to have a new vehicle every 2-3 years.

LP (Lease Purchase) - A combination of HP and PCP finance.  You pay an initial deposit and low monthly payments (similar to a PCP), with a large final payment at the end of the term. However the final payment (often referred to as balloon payment) is not a guaranteed value, so there is some risk of negative equity at the end of the term.

The most important thing to remember is take your time when choosing your new car finance option and take into account all factors before purchasing your new car. For example low-rate or finterest free deals may be offset against an inflated price tag of the new car and/or hidden fees.