Important Information & Initial Disclosures

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Understanding Loan Costs:

• Annual Percentage Rate (APR): This represents the yearly interest rate on your loan, including any fees associated with borrowing.

• Monthly Payments: These are calculated by dividing the total loan amount and interest by the loan term (number of months). Use our loan calculator to estimate your monthly payment and total interest cost.

• Loan Term: A shorter loan term generally results in lower overall interest paid, but with higher monthly payments. Conversely, a longer loan term will have lower monthly payments but higher total interest costs.

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Factors Affecting Your Loan:

• Loan Term: As mentioned above, the chosen loan term significantly impacts your monthly payments and total interest cost.

• Credit Score: A strong credit score typically qualifies you for a lower APR, leading to lower monthly payments and overall cost.

• Down Payment: A larger down payment reduces the total amount you borrow, potentially lowering your monthly payments and total interest.

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Tips for Lowering Loan Costs:

• Choose a Shorter Loan Term: Opting for a shorter repayment period will minimise total interest paid despite higher monthly payments.

• Improve Your Credit Score: Building a good credit history can significantly reduce your loan interest rate.

• Consider a Down Payment: A larger down payment reduces the loan amount, lowering monthly payments and overall interest.

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PCP (Personal Contract Purchase): Please contact us directly for a PCP quote

• Lower Monthly Payments: PCP spreads the cost over a fixed term, often resulting in lower monthly payments compared to HP.

• Flexibility at Term End: Choose to own the car with a final balloon payment, return it with no further obligation (meeting mileage and condition criteria), or use equity towards a new PCP deal.

Things to Consider with PCP:

• Ownership: You don't own the car until you make the final balloon payment.

• Mileage Limits: PCP agreements often have mileage restrictions, and exceeding them can incur extra charges.

• Potential Upfront Costs: While the monthly payments might be lower, there could be higher initial deposit requirements compared to HP.

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HP (Hire Purchase):

• Ownership Path: HP allows you to own the car outright after the final payment.

• Simpler Structure: Fixed monthly payments throughout the term offer predictable costs.

• More Mileage Freedom: HP typically doesn't have strict mileage limitations compared to PCP.

Things to Consider with HP:

• Higher Monthly Payments: HP agreements often have higher monthly payments than PCP for the same car.

• Longer Wait for Ownership: It takes the full loan term to own the car completely.

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ECP (Extended Contract Purchase):

The New Hybrid Option combining the benefits of both PCP and HP.

• Lower Monthly Payments: Similar to PCP, ECP offers potentially lower monthly payments compared to HP.

• Ownership Focus: Unlike PCP, ECP is geared towards car ownership. You build equity throughout the loan term.

• Longer Loan Term & Early Settlement: ECP extends the loan term, allowing for even lower monthly payments. You can still choose to pay off the loan early with a settlement figure based on the remaining balance, not an estimated future value.

• Part-Exchange & Selling Flexibility: You can still part-exchange your car for a new one or sell it privately during the loan term. However, the lender doesn't take the car back at the end.

Things to Consider with ECP:

• Longer Commitment: ECP extends the loan term, meaning longer repayment compared to PCP.

• Settled Ownership Path: Unlike PCP, you can't return the car at the end and walk away.

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Important Information & Initial Disclosure:

• About Us: HN Automotive (Staffs) LTD is authorised and regulated by the Financial Conduct Authority (FCA) for consumer credit activities. Our FCA Register Number is 926376. You can verify this on the FCA's website at register.fca.org.uk.

• Our Role: We act as a credit broker, not a lender. We are not impartial and may act in our own commercial interests. We do not provide independent financial advice. Our role is to introduce you to lenders from our panel and help facilitate your finance application.

• Our Services: We work with a panel of lenders to provide vehicle finance options to our customers. A list of these lenders is available upon request.

• Commission: We do not charge you a fee for our credit broking services. However, we typically receive a commission from the lender or finance broker we introduce you to. This commission may be:

• A fixed fee

• A percentage of the loan amount

• Not capped

• Example: For a car priced at £18,999 with a £3,000 deposit, the amount borrowed would be £15,999. If we receive a 5% commission, our commission would be approximately £800.

• The exact amount of commission varies depending on the lender and finance product. We will disclose the specific amount to you before you sign any agreement.

• Important: The amount of commission we receive does not influence the interest rate or terms you are offered by the lender.

• Finance Calculator: Our finance calculator provides estimates only and does not guarantee loan approval, specific interest rates, or terms. Using the calculator will not affect your credit score.

• Part Exchange Valuation: The part exchange value you enter is an estimate to help with your financing calculations. The final offer for your trade-in will be determined after a thorough inspection by our team at HN Automotive. You can request a free online valuation by visiting www.hnautomotive.co.uk/valuation

• Credit Checks: If you proceed with a formal loan application, the lender will conduct a credit check. This may impact your credit score and affect the interest rate you're offered.

• Finance Options: Availability of finance options may be restricted based on factors such as the vehicle's age, mileage, and other criteria set by lenders.

• How It Works: a) You provide information about your desired loan amount and terms. b) Our calculator offers estimated figures for illustration purposes. c) We connect you with lenders through a finance broker. d) The finance broker presents suitable loan options based on your creditworthiness. e) We explain the key features of these options to you.

• Your Right to Withdraw: You have the right to withdraw from this agreement within 14 days without giving any reason. The withdrawal period will expire after 14 days from the day of the conclusion of the contract. To exercise the right to withdraw, you must inform us of your decision by a clear statement (e.g. a letter sent by post or email). To meet the withdrawal deadline, it is sufficient for you to send your communication concerning your exercise of the right to withdraw before the withdrawal period has expired.

• Complaints: If you wish to register a complaint, please contact us: In writing: HN Automotive, Moor View, Commonside, Rugeley, Staffordshire, WS154NQ. By phone:01543 573 933 By email: info@hnautomotive.co.uk

• If you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service.

Disclaimer:

We recommend seeking independent financial advice before making any financial commitments.