Important Information

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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:

• This finance calculator provides estimates only and does not guarantee loan approval, specific interest rates, or terms.

• HN Automotive acts as an introducer, passing your information to a credit broker who may not be the lender.

• Using this calculator will not affect your credit score.

• If you decide to proceed with a formal loan application, a credit score check will be carried out by the lender. This check may impact your credit score. Your credit score will also affect the interest rate you are offered.

• Availability of finance options may be restricted based on the vehicle's age, mileage, and other factors.

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FCA Regulations:

HN Automotive (Staffs) LTD is authorised and regulated by the Financial Conduct Authority (FCA) for consumer credit. Our FRN is 926376 (register.fca.org.uk).

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How it Works:

1. You provide information about your desired loan amount and terms.

2. Based on this information, the calculator offers estimated figures for illustration purposes only.

3. HN Automotive connects you with a selected group of lenders through a finance broker (list available on request).

4. The finance broker presents loan options potentially suitable for your situation (subject to your creditworthiness).

5. HN Automotive will explain the key features of these options.

6. We do not charge a fee for our credit broking services.

7. The finance broker or lender we introduce you to will typically pay us an introductory commission. This commission could be a fixed fee or a percentage of the loan amount.

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

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Disclaimer:

This information is intended for general understanding only and is not a substitute for professional financial advice. We recommend seeking independent financial advice before making any financial commitments.