Finance at John Grose
Dealer Finance Explained
John Grose provides a wide range of finance facilities which are described below. The finance tables shown within our new car section are examples. Though, should the figures stated suit your circumstances, you can take advantage of the finance examples shown, our specialist advisors can tailor a package to your individual needs. They will factor in your deposit (which could include the value of a vehicle you wish to part exchange), your monthly payment budget and your desired term.
Hire Purchase Explained
Hire Purchase (HP) is very similar to borrowing a sum of money from a bank and paying it back over a fixed period of time, with interest. It’s a type of secured loan which is often preferred over alternative (unsecured) loans because it allows a greater borrowing limit. The term "secured loan" means exactly that, a loan that the lender can secure against an asset (in this case, the vehicle). HP gives you additional rights over those of a personal loan and is only available through dealers that have passed the stringent approval process of the finance companies.
Personal Contract Purchase (PCP) Explained
A Personal Contract Purchase (PCP) plan will enable you to purchase your next car with lower monthly repayments. The way this is achieved is by deferring an amount of the total cost of the vehicle to the end of the contract. This amount is known as the Guaranteed Minimum Future Value (GMFV).
The Guaranteed Minimum Future Value plus your deposit is subtracted from the cash price of the vehicle and your monthly payments are based on the balance (plus interest on the balance and the GMFV). By only repaying the difference between the cash price and the optional balloon payment you are only financing the depreciation of the car.
At the end of the contract you have three options:
- Return the vehicle to the finance company. As long as you have not exceeded the agreed mileage, you will have nothing more to pay.
- If you want to keep the vehicle, you can simply pay off or refinance the outstanding balloon payment.
- You can come back to us and part-exchange your vehicle for a new one. If the trade-in value is greater than the GMFV, the difference can be used towards a deposit on the next agreement.
Personal Contract Hire/Leasing Explained
Contract hire or leasing is simply a method of long term renting, linked to a mileage allowance, which provides a fixed monthly payment for your new vehicle.
You can choose how long you want to keep the vehicle from a range of options, and simply bring it back to us at the end of the contract, at which point you may wish to order a new vehicle. It is a really simple way to budget and fix your motoring costs, as all you need to do is insure and fuel your vehicle.
We are confident that our products are suited to a wide range of finance needs, but if you are not sure then the Finance & Leasing Association have produced an impartial guide to motor finance. Their simple guide to your finance options will explain how the different products work and their finance decider tool will help you choose which product is the most suited to your needs.