At the beginning of your agreement, you'll agree:

1. Your initial deposit

2. Your expected annual mileage

3. Your agreement term

4. Your fixed monthly payments

5. Your Optional Final Payment

You'll then make your agreed monthly payments throughout the term.

You'll normally have three options:

Keep it
Pay the Optional Final Payment, plus any applicable purchase fee, and take ownership of the vehicle.

Change it
Part exchange the vehicle and, where applicable, use any equity towards your next vehicle.

Return it
Hand the vehicle back to the finance company, subject to the agreed mileage and vehicle condition requirements.

Additional charges may apply if you exceed the agreed mileage or the vehicle falls outside the lender's acceptable fair wear and tear standards.

PCP may be worth considering if you:

• Like changing your vehicle every few years

• Want several options at the end of your agreement

• Prefer to agree your mileage in advance

• Don't necessarily want to own the vehicle

• Want the option to purchase it at the end

1. Choose your vehicle

2. Pay an initial deposit

3. Agree the length of your finance agreement

4. Make fixed monthly payments

5. Make any applicable Option to Purchase payment

6. Own the vehicle once all required payments have been made

Your part exchange can potentially be used towards your deposit.

HP may be suitable if you:

• Want to own your vehicle at the end

• Prefer fixed monthly payments

• Don't want a large Optional Final Payment based on the vehicle's future value

• Don't want an agreed annual mileage allowance as part of the finance agreement

Conditional Sale is a straightforward way to spread the cost of your vehicle while working towards ownership.

1. Pay a deposit – This can usually be a cash deposit, part exchange, or a combination of both.
2. Agree your term – Choose an agreement length that suits you, subject to the finance options available.
3. Make fixed monthly payments – Pay the agreed amount each month for the duration of the agreement.
4. Complete the agreement – Once all required payments have been made, ownership of the vehicle passes to you automatically.

Conditional Sale may suit customers who know from the outset that they want to own the vehicle once the agreement has been completed.

Availability will depend on the vehicle and finance provider.

1. Choose an eligible vehicle available with a 0% APR offer.

2. Select the qualifying finance product.

3. Pay any required deposit or use your part exchange towards it.

4. Agree your finance term and, where applicable, annual mileage.

5. Make your agreed monthly payments without interest being added to the amount financed.

6. Follow the end-of-agreement options associated with the underlying finance product.

Deposit requirements, terms and vehicle eligibility can vary between promotions.

What happens at the end depends on the type of finance agreement your 0% APR offer is attached to.

For example, with 0% APR Hire Purchase, you'll own the vehicle once all required payments and any applicable Option to Purchase fee have been made.

With 0% APR PCP, you'll normally have the choice to keep, return or part exchange the vehicle, subject to the terms of your agreement.

0% APR Finance could suit you if you:

• Want to spread the cost without paying interest on the amount financed

• Have found an eligible vehicle with a 0% APR promotion

• Are comfortable with the deposit and monthly payments required

• Meet the eligibility requirements of the offer

• Are happy with the terms of the underlying finance product

1. Choose your vehicle.

2. Pay an initial deposit.

3. Agree your finance term.

4. Agree the amount of the final balloon payment.

5. Make fixed monthly payments throughout the agreement.

6. Pay the balloon payment at the end.

7. Once all required payments have been made, ownership transfers to you.

At the end of the agreement, you'll need to make the agreed balloon payment, together with any other amounts required under your agreement.

Once all required payments have been made, the vehicle becomes yours.

Unlike PCP, the balloon payment isn't normally an optional payment that you can avoid simply by returning the vehicle.

Once you own the vehicle, you can keep it, sell it or part exchange it.

Balloon Hire Purchase could suit you if you:

• Ultimately want to own the vehicle

• Want to reduce your regular monthly payments compared with conventional HP on comparable terms

• Are comfortable budgeting for a larger final payment

• Don't require the return option associated with PCP

1. Choose your vehicle.

2. Pay an initial deposit.

3. Agree your finance term and payment structure.

4. Make your agreed monthly payments.

5. Make any agreed final payment where applicable.

6. Once all payments required under the agreement have been made, ownership passes to you.

Once you've made all payments required under your agreement, ownership of the vehicle passes to you.

Lease Purchase is designed around eventual ownership rather than simply returning the vehicle at the end of the term.

Once you own it, you're free to keep, sell or part exchange the vehicle.

Lease Purchase could suit you if you:

• Know you ultimately want to own your vehicle

• Want to spread its cost over an agreed period

• Are comfortable with the agreed payment structure

• Don't require the flexibility to simply return the vehicle at the end

Availability and terms will vary between finance providers.

1. Choose the vehicle or vehicles your business requires.

2. Agree the contract length.

3. Agree the annual mileage.

4. Pay an initial rental.

5. Make fixed monthly rentals throughout the contract.

6. Return the vehicle at the end.

Maintenance can sometimes be incorporated into the agreement for an additional cost, helping businesses plan their vehicle expenditure.

At the end of a BCH agreement, the vehicle is returned to the finance provider.

Your business doesn't own the vehicle, and a standard BCH agreement isn't designed to transfer ownership at the end.

Additional charges may apply for excess mileage or vehicle condition outside the finance provider's fair wear and tear guidelines.

Your business can then choose another vehicle and enter into a new agreement if required.

BCH could suit your business if you:

• Don't need to own your vehicles

• Prefer predictable monthly rentals

• Regularly replace company vehicles

• Can estimate your business mileage

• Want to avoid tying up capital in purchasing vehicles

The tax and VAT treatment of business vehicles depends on individual circumstances and vehicle use, so businesses should seek appropriate professional tax advice.

1. Choose the vehicle required by your business.

2. Agree the finance term and payment structure.

3. Pay an initial rental.

4. Make agreed monthly rentals throughout the primary term.

5. Make any agreed final rental where applicable.

6. At the end, follow the options specified within your Finance Lease agreement.

The exact structure and end-of-term arrangements will depend on the finance provider and individual agreement.

Your business doesn't automatically own the vehicle at the end of a Finance Lease.

Depending on the terms of the agreement, you may be able to arrange for the vehicle to be sold to a third party on behalf of the finance provider, with a proportion of the sale proceeds potentially returned as a rebate of rentals.

Alternatively, you may be able to enter a secondary rental period and continue using the vehicle.

The exact options will depend on your individual agreement.

Finance Lease could suit your business if you:

• Want a flexible way to fund vehicles

• Don't need to legally own the vehicle

• Want to manage business cash flow

• Want an alternative to traditional Business Contract Hire

• Are comfortable with the end-of-agreement responsibilities

APR stands for Annual Percentage Rate.

It is designed to show the annual cost of borrowing and takes account of the interest rate and certain charges associated with a credit agreement, helping you compare the cost of different finance products.

The APR you're offered may depend on the finance product and your individual circumstances.

Where a finance promotion displays a Representative APR, it means that at least 51% of customers who enter into an agreement as a result of that promotion are expected to receive the advertised rate or a lower rate.

The APR you're personally offered could be different and will depend on factors including your circumstances and the lender's assessment.

An Optional Final Payment is an amount deferred until the end of certain finance agreements, most commonly PCP.

If you decide to keep the vehicle at the end of a PCP agreement, you'll need to pay the Optional Final Payment along with any applicable purchase fee.

Alternatively, subject to the terms of your agreement, you may be able to return or part exchange the vehicle.

GMFV stands for Guaranteed Minimum Future Value.

It is the amount used at the beginning of a PCP agreement to represent the vehicle's anticipated value at the end of the term, based on factors including its age and agreed mileage.

This is used to determine the Optional Final Payment.

Some finance and leasing agreements require you to agree how many miles you expect to drive each year.

Mileage can affect the monthly payment because it influences the expected future value of the vehicle.

If you return the vehicle having exceeded the agreed mileage allowance, an excess mileage charge may apply.

The rate will be detailed within your agreement.

Potentially, yes.

If you part exchange your current vehicle and it has positive equity, this can usually be used towards the deposit on your next vehicle.

Our Startin Group team can value your current vehicle and explain how your part exchange could contribute towards your next purchase.

Yes, in many circumstances.

We'll establish the settlement amount on your existing finance and compare it with your vehicle's part-exchange value.

If your vehicle is worth more than the outstanding finance, the difference may provide equity that can potentially be used towards your next vehicle.

If the outstanding finance is greater than the vehicle's value, there is a shortfall, often referred to as negative equity. Our team can explain the options that may be available.

A finance estimate gives you an indication of what a finance agreement could look like based on assumptions such as:

• Vehicle price

• Deposit

• Agreement term

• Annual mileage

• Interest rate or Representative APR

It isn't necessarily based on your individual financial circumstances, so the actual finance terms offered to you may be different.

A finance quote provides more specific details about a proposed finance agreement.

It may include:

• Amount of credit

• Interest rate

• APR

• Deposit

• Monthly payments

• Agreement term

• Final payment, where applicable

• Fees or charges

The terms you're offered will depend on the finance product, lender and your individual circumstances.

No. Advertised monthly payments and finance examples are usually based on specified assumptions and eligibility requirements.

The finance available to you will depend on factors including your personal circumstances, creditworthiness, affordability, the vehicle and the finance provider.

Finance is subject to status and terms and conditions.

Having a lower credit score doesn't necessarily mean you won't be able to obtain vehicle finance.

Lenders have different criteria and may consider factors including:

• Your income

• Employment

• Existing financial commitments

• Affordability

• Credit history

Submitting a finance application doesn't guarantee acceptance, and the interest rate or terms you're offered may vary depending on your circumstances.

The decision to offer credit is ultimately made by the relevant lender.

Requirements vary between lenders, but you may be asked to provide information such as:

• Full name

• Date of birth

• Current and previous addresses

• Employment details

• Income and expenditure information

• Bank details

• Proof of identity

• Proof of address

• Driving licence

Your Startin Group team will explain what's required when you're ready to apply.