Honda Personal Contract Purchase (PCP) – What is PCP?
A fantastic option for those looking to finance a brand-new Honda, Personal Contract Purchase (PCP), typically provides lower monthly payments compared to options such as Hire Purchase (HP). Factors such as the value of your vehicle, your initial deposit, the length of the agreement, and your estimated annual mileage influence your monthly payments.
The duration of a PCP agreement commonly ranges from two to four years. At the end of the agreement, you will have three options:
- Retain: keep the car
- Return: return the car
- Renew: upgrade to a new car
If you choose to retain the car, you are required to pay the Guaranteed Future Value (GFV) and a small option to purchase fee. One these payments are made, the car is yours! The GFV is the amount we originally estimated your vehicle to be worth at the end of the agreement.
Heritage Honda provides a range of Honda PCP deals, making this finance option a compelling choice for anyone looking to purchase a new Honda.
Honda Finance Lease Explained
A hire agreement tailored specifically to business users, a Finance Lease offers additional financial advantages that make it an appealing option. Finance Lease agreements range from one to four years, giving you flexibility to tailor your contract to suit the requirements of your business.
At the end of your Honda lease agreement, you may choose to sell the vehicle on behalf of Honda Finance, which could result in rebates on rentals you have previously paid. Unlike purchase agreements, leasing is treated differently for tax purposes – offering potential advantages! A portion of your rental payments can typically be claimed as a business expense against taxable profits. Depending on the value of your leased vehicle, the exact amount of business expenses claimed against taxable profits may change.
Honda Hire Purchase
If you are confident that you want to buy a vehicle, Hire Purchase (HP) is an excellent choice. Like a PCP, you will agree on an initial deposit and the length of your agreement. However, there are no mileage limits to worry about with HP. These agreements offer more flexibility; terms range from one to five years. The longer the term, the lower the monthly repayments.
At the end of your HP agreement, once all of your monthly payments and the option to purchase fee have been made, the car is yours! And, as opposed to PCP finance, no large final payment is required.
Honda Contract Hire
Instead of purchasing a vehicle outright, Business Contract Hire (BCH) provides a flexible solution for both you and your business.
At Heritage Honda Gloucester, we recognise that business needs can change, which is why a BCH agreement allows you to adjust the term and mileage. Offering flexibility to suit your business requirements, Honda BCH rental agreements span from two to five years.
In addition to BCH, Heritage Honda also offers Personal Contract Hire (PCH) for private customers. You can drive your desired car without being required to own it. Between two and five years, PCH offers contract lengths that suit you, offering you a simple and cost-effective solution.
Contract Hire agreements are based on factors such as annual mileage and the length of the contract. Initial rent is required, which typically covers three or six months advance payment. At the end of the agreement, you will return the car to Honda Contract Hire. As long as you stay within the agreed mileage and the car is in good condition, there will be no additional charges.
Honda Lease Purchase
Honda Lease Purchase is an ideal choice for businesses looking to buy vehicles. This agreement is available for terms ranging from one to four years and allows you to defer part of the value of the vehicle until the end of the term. At the conclusion of the agreement, you can make a final lump-sum payment to purchase the vehicle. If your business is not VAT registered, Lease Purchase may be an appealing option.
Honda Finance Deals
At Heritage Honda, we offer many New Honda Offers to make financing a brand-new Honda as affordable as possible. These offers include affordable monthly repayments, generous deposit contributions, and attractive APR Representatives.
If you are looking to lease a vehicle for your business needs, be sure to check out our New Honda Business Offers. To remain competitive, our offers are regularly updated. So, if you see a perfect deal, get in touch with our team today, located in Gloucester, Gloucestershire.
Honda Dealerships Near You
For more details about our current Honda finance options, get in touch with your local Honda dealership today. Our Honda Gloucester showroom team has the expertise to find your perfect vehicle and ideal finance options to match your budget. Please contact us using our online form or visit us in Gloucester today!