Vauxhall Finance: Driving You Towards Your New Car

Vauxhall Finance, operated by Stellantis Financial Services UK Limited, is the financing arm of Vauxhall Motors in the United Kingdom. It provides a variety of finance options to help customers purchase new and used Vauxhall vehicles. Understanding these options is crucial to making an informed decision that aligns with your budget and needs.

Key Finance Options:

Vauxhall Finance offers several main types of finance packages:

• Personal Contract Purchase (PCP): This is a popular option offering lower monthly payments compared to traditional loans. You pay a deposit followed by fixed monthly payments over an agreed term (usually 2-4 years). At the end of the agreement, you have three choices:
• Return the car: Provided you've adhered to mileage limits and kept the vehicle in good condition, you can simply return it with nothing further to pay.
• Purchase the car: You can pay the Guaranteed Future Value (GFV), also known as the optional final payment, to own the car outright.
• Part-exchange the car: Use any equity (the difference between the car's market value and the GFV) towards a new Vauxhall.
• Hire Purchase (HP): This is a more traditional loan option. You pay a deposit followed by fixed monthly payments over an agreed term. Once you've made all the payments, you own the car outright. HP typically involves higher monthly payments than PCP but doesn't have a final balloon payment.
• Conditional Sale: Similar to Hire Purchase, ownership transfers automatically after all payments are made.
• Personal Contract Hire (PCH) or Leasing: You essentially rent the car for a fixed period, paying monthly rentals. You never own the car, and at the end of the agreement, you simply return it. This option often includes maintenance packages, making budgeting easier. PCH is generally geared towards business users but is also available to private individuals.

Factors to Consider:

When considering Vauxhall Finance, carefully evaluate the following:

• APR (Annual Percentage Rate): This represents the total cost of borrowing, including interest and any fees. Compare APRs across different finance options to find the most competitive rate.
• Deposit: A larger deposit typically results in lower monthly payments but requires a greater initial outlay.
• Term Length: Longer terms lead to lower monthly payments but can result in paying more interest overall.
• Mileage Limits (PCP & PCH): Exceeding agreed mileage limits on PCP or PCH agreements will incur excess mileage charges.
• Optional Final Payment (PCP): Ensure you can afford the optional final payment if you intend to purchase the car at the end of a PCP agreement.
• Total Cost of Credit: Calculate the total cost of borrowing, including all interest and fees, to understand the overall expense.

Benefits of Vauxhall Finance:

• Convenience: Streamlines the car buying process by providing financing directly at the dealership.
• Competitive Rates: Vauxhall Finance often offers promotional rates and deals.
• Flexible Options: A range of finance options caters to different budgets and needs.
• Protection: Some finance packages include protection products like payment protection insurance.

Before committing to any finance agreement, carefully read the terms and conditions, understand your obligations, and seek independent financial advice if needed. Comparing different finance options, including those from banks and credit unions, is always recommended to ensure you get the best deal for your circumstances.