Planning the funding of your Volkswagen starts here
Whether you run a small business, a large fleet or are purchasing as a private individual, North Wales Volkswagen Van Centre have the expertise to help you choose the right vehicle for you and your business. We believe that when you buy a Volkswagen Commercial vehicle, it’s the start of a relationship rather than the end.
There are a number of different buying routes open to you. We can help you run through all the purchasing options to help you make the right decision. Here's a quick guide to get you started:
You pay for the vehicle in full up front – great because there are no credit charges – but do you want all that capital tied up in your vehicle?
You pay for the vehicle via a deposit (usually between 5% and 50%) and pay the rest off in installments. Great for spreading the cost, but interest charges will apply. Contracts typically last between 1 and 5 years.
You pay for the vehicle via a deposit (usually between 5% and 50%) and pay the rest off in instalments with a final balloon payment at the end. Great if you want drive a higher spec but keep your monthly payments lower. Generally more flexible than Hire Purchase, but remember that balloon payment. Contracts typically last between 2 and 5 years.
Two options here: Finance Lease Balloon allows you to pay over installments and potentially profit from the sale of the vehicle. This can lower your interest costs and the sales proceeds generally cover the balloon payment – but it’s not guaranteed. Finance Lease Full Payout eliminates the risk / reward element of the balloon payment, but your monthly payments will be higher.
You pay an initial rental (usually between 3 and 6 monthly payments) and then pay a monthly rental to cover the depreciation of the vehicle (usually based on the residual cost and the mileage you’ll travel over the contract). Contract hire is great if you’re not bothered about actually owning the vehicle and want to change / upgrade regularly. Contracts typically last between 2 and 4 years.
Personal Contract Plan (PCP)
You to make payments over a period of time, which may be a more flexible alternative to Hire Purchase. You can choose to put down a small sum initially and then defer a proportion of the vehicle’s value until the end of the agreement, which could reduce your payments and allows you to decide later whether you want to keep, return or exchange the vehicle for a new one.
Whichever funding route you take it’s important to consider the following:
Certain options offer substantial tax-saving opportunities, so North Wales Volkswagen Van Centre recommend that you discuss your options with an experienced Tax Advisor before signing an agreement.