Exploring Evans Halshaw Finance Options

Evans Halshaw, a prominent car dealership group in the UK, offers a variety of finance options designed to make vehicle ownership more accessible. Understanding these options is crucial for making an informed decision that aligns with your financial situation and driving needs.

Hire Purchase (HP)

Hire Purchase is a traditional finance method where you pay a deposit followed by fixed monthly installments over an agreed period. Crucially, you don’t own the car until the final payment is made. This option is suitable for those who want to eventually own the vehicle outright and are comfortable with a fixed monthly cost. The interest rate is usually fixed, providing predictability. HP agreements often require a larger deposit compared to other finance options.

Personal Contract Purchase (PCP)

PCP agreements are increasingly popular due to their flexibility. Similar to HP, you pay an initial deposit and then monthly installments. However, the monthly payments are generally lower because you’re not paying off the full value of the car. Instead, you’re paying for the depreciation over the term of the agreement. At the end of the term, you have three options:

• Option 1: Return the car and walk away (subject to mileage and condition checks).
• Option 2: Pay the optional final payment (also known as a balloon payment) to own the car outright.
• Option 3: Trade in the car and use any equity as a deposit on a new vehicle.

PCP is ideal for those who like to change their cars regularly and prefer lower monthly payments. It’s important to carefully consider the mileage allowance, as exceeding it can result in extra charges. Also, understand the “Guaranteed Future Value” (GFV), which is the predicted value of the car at the end of the agreement. This value protects you if the car depreciates faster than expected.

Personal Loans

While not directly offered by Evans Halshaw, using a personal loan from a bank or building society is another way to finance a car purchase. You borrow a lump sum and repay it with fixed monthly installments. The car is yours from the outset, and you’re free to sell it at any time. Interest rates on personal loans can vary, so shop around to find the best deal. This option is best suited for those who prefer to own the car outright immediately and have secured a competitive interest rate.

Considerations and Tips

• Compare APR: The Annual Percentage Rate (APR) is the total cost of borrowing, including interest and fees. Compare APRs across different finance options to find the most cost-effective solution.
• Check the Small Print: Carefully read the terms and conditions of any finance agreement before signing. Pay attention to clauses related to early repayment, late payment fees, and mileage restrictions (especially with PCP).
• Deposit Amount: A larger deposit can reduce your monthly payments and the overall cost of finance.
• Affordability: Assess your budget carefully to ensure you can comfortably afford the monthly payments over the entire term of the agreement. Consider other costs associated with car ownership, such as insurance, fuel, and maintenance.
• Negotiate: Don’t be afraid to negotiate the price of the car and the terms of the finance agreement.

Evans Halshaw’s finance specialists can guide you through the available options and help you find a solution that meets your individual needs. Be sure to ask questions and seek clarification on any aspects you don’t fully understand before making a decision.