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Capital Car Finance have some amazing car finance deals available for both new and used Mercedess, our Mercedes PCP [Personal Contract Purchase] and LP (Lease Purchase) car finance schemes have been enjoyed by our customers for many years and now with our new low rate packages, we have some of the lowest APR’s in the UK.
We pride ourselves on our transparent “one to one” professional service, which is why most of our customers come back to us time and time again, please see our testimonials for more information. Our car finance products are available for all Mercedes vehicles up to 6 years old, providing they are supplied either by a UK Mercedes dealership, or an established approved used car outlet, we also have deals available for both business and private customers.
Please find details below on all our available Mercedes car finance products, or alternatively, why not give us a call to discuss the various options with a dedicated experienced adviser and see how much we can save you, our sales team can be contacted directly on 01925 589020.
One of the best ways to purchase a new or used car today, it allows customers to purchase a car of their choice at attractive fixed monthly finance payment, with the benefit of a low deposit outlay and a guaranteed minimum future value at the end of the agreement.
Sometimes referred to as Hire Purchase with a balloon and is structured in a similar way PCP, however unlike PCP there is no guarantee offered at the end of the agreement, customer can defer a capital lump sum amount until the end of the agreement.
Very similar to borrowing a sum of money from a bank and paying it back over a fixed period of time, with interest. Hire Purchase is a type of secured loan which are often preferred over alternative (unsecured) loans because they allow a greater borrowing limit.
PCP Car Finance has become one of the best ways to purchase or finance a new or used Mercedes, personal contract purchase allows you to purchase any Mercedes car of your choice at an affordable fixed monthly payment, with an initial low deposit and a guaranteed minimum future value (GMFV) or buy back at the end of the agreement term.
At Capital Car Finance we have the ability to offer our customers a very low rate of interest (From just 7.9% APR) together with industry leading GMFV’s making Mercedes cars very affordable.
Mercedes PCP is very useful if you drive a company car and looking to opt out of a company car scheme for example (Cash for Car), because you can use your company car allowance or mileage reclaims to fund your Mercedes PCP payments and avoid paying excessive company car taxes.
Monthly payments are fixed with PCP for the repayment period, which is normally two, three or four years and the added flexibility of PCP car finance gives you several options at the end of the agreement:
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Return the vehicle to the finance company and if you have not exceeded the agreed mileage, there is nothing more to pay.
You may keep the vehicle and simply pay off or refinance the outstanding Guaranteed Minimum Future Value [GMFV] payment.
You can part-exchange your vehicle and if the trade-in value is greater than the GMFV, the difference is yours to keep.
The Mercedes Personal Contract Purchase plan provides the benefits of driving a higher specification Mercedes for lower monthly cost, unlike traditional methods of car finance, this is achieved by deferring a percentage of the total cost of the Mercedes to the end of the contract, which is known as the guaranteed minimum future value.
This guaranteed minimum future value (GMFV) is the key difference between PCP and traditional forms of car financing such as Hire Purchase or personal loan. The GMFV plus your deposit is subtracted from the selling price of the vehicle and your monthly payments are based on the balance (plus interest on the balance and the GMFV). You will make lower payments than traditional financing simply because you are essentially only funding the depreciation of the vehicle.
At the beginning of the agreement, you decide on the total mileage you expect to do. If, at the end of the agreement, having chosen to hand your Mercedes back to the finance company, your mileage exceeds the agreed level, you simply pay a fixed amount for every extra mile.
It is in your interest to minimise ‘wear and tear’ on your Mercedes and not exceed the agreed mileage. When the agreement has finished, the vehicle may well be worth more than the GMFV, providing you with extra value, In simple terms ‘normal wear and tear’ means that for its age and mileage, your Mercedes is in fair working order, condition and repair.
Lease Purchase is sometimes referred to as Hire Purchase with a balloon and is structured in a similar way to Personal Contract Purchase or PCP car finance.
The customer will normally benefit from a slightly lower finance rate with a Mercedes lease purchase car finance product as there is no guarantee offered at the end of the contract, the deferred lump sum amount at the end of the agreement is known as the Residual Value (RV) or balloon, and this has to be paid by the customer for outright ownership of the vehicle. Deposits for Lease Purchase are flexible, normally aminimum of 10% and a maximum of 40% of the total vehicle price, repayment periods are taken over 3 or 4 years typically.
The Residual Value (RV) (sometimes called the balloon) at the end of the agreement reduces the regular monthly payments accordingly, thus making vehicles that traditionally have a strong Residual Value (RV) like Lexus, more suitable for this type of product as they make repayments far more affordable.
The Residual Values (RV) is calculated and set at the beginning of the lease purchase finance agreement but is not payable until the end of the contract, there are realistically two options for an BMW lease purchase at the end of the term, 1. Pay off the residual value in cash or settlement by part-exchange or 2. Some lenders will allow the residual value to be spread over a secondary period and refinanced again.
Call us now on 01925 589020 for your quote with our latest rate and offers and let's see how much we could save you!
Capital Car Finance Ltd are fully authorised and regulated by the Financial Conduct Authority for consumer credit activity (FCA Registration Number 685925) We are a credit broker and not a lender, which means we act independently as an intermediary for a number of different finance providers.
We will receive a commission payment from our finance provider should you decide to enter into an agreement with them, typically this is either a fixed fee or a fixed percentage of the amount you borrow. The payment we receive may vary between different finance providers and product types. However, the payment received does not impact the finance rate offered. Details of the amount of commission we receive will be provided for you prior to completion. All finance applications are subject to status, terms and conditions apply, UK residents only, 18’s or over, Guarantees may be required.
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