Your Finance Options
Morrison Mottors provide a wide range of finance facilities
which are described below and fully integrated into our web site. From the
comfort of your own home you can view all the available finance products for
your next vehicle and generate your own personalised quotations by changing the
deposit, term and annual mileage.
In addition, you can complete an application through our secure on-line proposal
form which will pass your information directly to our finance company. You will
then be guided through the process by them. In gaining pre-approval it allows
you to make a considered choice on your next car purchase in a quick and
convenient manner through a greater selection of finance products.
- Find your vehicle
- Choose your finance product
- Tailor your quotation
- Apply on-line
- Visit us and view the car
Hire Purchase
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. Hire Purchase is a
type of secured loan which are often preferred over alternative (unsecured)
loans because they allow 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.
Low Payment Plan
Low Payment 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 agreement. This amount is known as the Residual
Value (RV).
It is the customers responsibility to settle the final payment either though
additional finance, cash or settlement by part-exchange.
The Low Payment Plan product and has no tie to a mileage contract. Repayment
periods are typically taken over 2, 3 or 4 years and settlement can be made at
any stage of the agreement. We would recommend that you select your anticipated
annual mileage to a realistic level so that a realistic Residual Value is set
for the vehicle. At the end of the agreement you have three options:
- 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 RV, the difference can be used towards a
deposit on the next agreement.
- You can sell the vehicle privately and keep any profit over and above the RV.
Personal Contract Purchase
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 Future Value (GFV).
The Guaranteed 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 GFV).
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 four options:
- You can 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 GFV, the difference can be used towards a
deposit on the next agreement.
- You can sell the vehicle privately and keep any profit over and above the GFV.
Why Apply Online?
- You are in no way obliged to buy the vehicle, but by applying you register an
interest in the vehicle.
- You can submit your details at any time, our system is availiable 24hrs a day
for your convenience.
- By arranging your finance in advance you can have the comfort of knowing your
finances are in place.
- The whole process is confidential with no need to disclose personal details to
our operatives.
- The service is provided on a secure server so your details are kept totally
safe.
Impartial Advice
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.
Glossary
- APR (Annual percentage rate) - a standard method of calculating
the full cost of the interest and other charges on the finance. You should use
the APR to compare the cost of different finance options, although lease
agreements will not show an APR.
- Balloon Payment - a one-off payment made by you at the end of
some finance agreements. It will reduce your monthly payments.
- Credit Rating - a scoring system used by finance companies to
help decide how much finance to make available to you. Click
here
for more information
- Flat rate - the base interest rate charged on the finance.
Dealers will sometimes quote a monthly or annual flat rate but you should ask
for the APR, which more accurately describes the true cost of the finance.
- Guaranteed Future Value (GFV) - it is the lowest amount that
your car is guaranteed to be worth at the end of a contract purchase deal and
will usually be the same as the deferred amount on the finance.
- Residual value - the value of your car at the end of the
finance agreement, after a certain time and mileage. It may or may not be
guaranteed, depending on the terms of your agreement.
- Total amount payable - the total cost of the finance, including
any interest or other charges, if you repay the finance over the agreed period.
This is a good way to compare the actual cost of various types of motor finance.