Ponthir Approved Finance

When looking for a new or used car, it’s likely that you’ve come across lots of car financing options that can leave you scratching your head and unsure which finance option is right for you - or even whether you should get your car on finance in the first place!

Car finance might not be for everyone, but it does help to spread the cost of a new or used car over monthly repayments, which you agree before signing anything.

We offer a range of finance plans to suit individual preferences and circumstances, such as:

  • Personal Contract Purchase
  • Hire Purchase

Personal Contract Purchase (PCP)

What is it?

A Personal Contract Purchase is a flexible form of loan where some of the cost is deferred until the end of the agreement in order to provide you with the benefit of lower monthly payments. The deferred amount is known as the Optional Final Payment and is sometimes also referred to as the Guaranteed Future Value (GFV). At the end of the agreement you have three options:

1. Retain the car: simply pay the Optional Final Payment, and the agreement is complete.

2. Return the car: there’s nothing more to pay if the car is in good condition and within the agreed mileage terms.

3. Renew the car: choose another car, using any excess part exchange value that is above the Optional Final Payment towards your deposit.

PCP Finance Visual

How does it work?

You will agree an estimated annual mileage and this will be used to determine the Optional Final Payment

You agree on the amount of deposit, and this figure combined with the agreement duration and Optional Final Payment will determine the amount of your monthly payment

You sign the agreement, pay the deposit and then make the monthly payments

The interest rate is fixed which means you’ll know exactly how much you will repay throughout the term of the agreement

At the end of the agreement we’ll write to remind you of the three available options

You decide which option is best for you. Your dealer may be able to help if you decide to part exchange the car

Features & Benefits

A fixed monthly payment, allowing you to budget with confidence

Potentially lower payments than Purchase Plan agreement

Variety of options available at end of the agreement

You can match the length of your agreement with the time you want to keep the vehicle

You will have the right to terminate the agreement early (under a Voluntary Termination through the Consumer Credit Act 1974)

Important Information

At the end of your agreement you have three options:

  1. If you fancy a change you can simply part exchange your car for a different make/model on a new Solutions contract
  2. If you love your car you can pay the option to purchase fee and the optional final payment then take full ownership of the vehicle
  3. If you don't want to upgrade or keep it, as long as it's been loved, you can simply give it back. (fees may be payable)

It is important that you keep up to date with your monthly repayments, so please contact your lender if you are having any difficulties as the vehicle maybe at risk if you don’t.

You may end your agreement earlier than the full term. However, depending how far you are in to your agreement will affect the final amount left to pay.

If you exceed agreed mileage at the start of your agreement and intend to return the vehicle then excess mileage charges will apply.

Keep the vehicle in good condition as this will affect the value of the vehicle. You may be charged for any damage that goes beyond fair wear and tear.

PCP may not be suitable if you want to settle the agreement early or if want to own the vehicle at the end of the term and may have difficulty in making the balloon payment. Smaller deposits work better with a PCP.

Hire Purchase (HP)

What is it?

Hire Purchase is a car finance agreement that allows you to spread the cost of buying a car over a period of time, and own the vehicle at the end of the agreement. Ultimately, this means getting a car is more affordable as you can spread the cost of your car over a longer period of time.

With our hire purchase arrangements, you’ll pay a fixed monthly cost for your car. You'll have flexibility in the amount you pay each month, depending on how much you decide to pay up front, the length of the agreement and the type of vehicle you choose. It's also worth bearing in mind that credit is subject to status.

HP Finance Visual

How does it work?

You choose your deposit amount at the beginning of the agreement, and then pay equal monthly repayments with a fixed interest rate, over your chosen period. After you’ve made all the repayments including any interest, you will become the owner of the vehicle

Depending on your credit status, you can:

Borrow any amount from £3,000 for new vehicles and from £2,000 on used

Repay over 1-5 years depending upon the age of your vehicle

Decide on the deposit you would like to pay (no deposit may be available, subject to status)

Features & Benefits

Flexible deposit options

Fixed interest rate and monthly repayments (including any interest) over your chosen period (1-5 years)

Fixed monthly repayments to suit your budget

You won’t be restrained to a certain mileage

Choose any new or used car as long as the car is less than 14 years old at the end of the agreement

Important Information

Ownership of the vehicle will remain with your lender until you have paid both the option to purchase fee and all monthly payments.

It is really important that you keep up to date with your monthly repayments so please contact your lender if you are having any difficulties as the vehicle may be at risk if you don’t.

Michael Jeffery Limited is authorised and regulated by the Financial Conduct Authority. FRN: 688200. We are a Credit Broker not a Lender and can introduce you to a limited number of lenders. We typically receive a fixed commission calculated by reference to the vehicle model or amount you borrow, for introducing you to a lender but this does not affect the interest charged on the agreement, all of which are set by the lender. Our manufacturer support finance companies also provide preferential rates to us for the funding of our vehicle stock. Michael Jeffery Ltd is an Appointed Representative of AutoProtect (MBI) Limited for General Insurance distribution purposes which is authorised and regulated by the Financial Conduct Authority for Insurance Distribution Activity (Firm Reference Number 312413). You can check this on the FCA Register by visiting the www.fca.org.uk

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