Finance
Hippo Approved offer straightforward finance plans and £0 deposit options, to ensure getting a car with us is as seamless and simple as possible. With their years of experience, our account managers can provide you with the best level of advice and guidance on which finance package is best suited to you. With many variations of car finance for both our personal and business customers, you can make your dream car a reality.
Rates from 11.9% APR. Representative APR 12.9%. We are a credit broker, not a lender.
Personal Contract Purchase (PCP)
Similar to Hire Purchase – with the added advantage of a guaranteed future value on the vehicle (GFV) at the end of the period. PCP is for private individuals who want the option of eventual ownership coupled with the security and peace of mind of the Finance Company guaranteeing the vehicles value (subject to normal wear and tear and an agreed mileage) at the end of the period.
A low initial deposit is payable, followed by a fixed monthly payment for the period of the loan. At the end of the agreement the guaranteed future value (GFV) becomes relevant and there are 3 end of contract options:
- The vehicle may be owned by paying the guaranteed future value.This value is fixed at the start of the agreement and will be as stated on the original documentation.
- The car can be handed back to the Finance Company and another car chosen and funded through European Finance , subject to the vehicle meeting the conditions in the agreement.
- The vehicle may be part exchanged against a new vehicle using any equity, the difference between the cars trade in value and the guaranteed future value, as deposit.
Personal Contract Hire (PCH)
Personal car leasing, otherwise known as personal contract hire or PCH, is a way to spread the cost of your vehicle over a longer period. Instead of having to pay for the entire car or van upfront, you make fixed monthly payments over a pre-agreed term, usually between 12 and 48 months. Then, when your agreement ends, you simply return the vehicle to your finance provider and walk away. You’re then free to start a new contract if you wish. With a personal contract hire agreement, you never own the vehicle. Instead, your monthly payments cover its depreciation during your tenure. That means your monthly payments are usually significantly lower than some other types of finance, such as hire purchase. A personal contract hire agreement’s payments are calculated by using several criteria.
- The value of your vehicle at the start of the agreement, with your monthly payments covering any depreciation of the vehicle
- Your expected annual mileage
- How long the agreement is going to last
You can choose how much initial rental you wish to add - if any - as well as how many miles a year you need. You can also personalise how long you want the agreement to last to ensure it suits your needs and circumstances. When you hand the vehicle back at the end of your lease, as long as you’ve kept to the agreed mileage and there’s no damage to the car or van outside of fair wear and tear, you’ll face no extra charges. A personal contract hire agreement is perfect if you never want to own the vehicle. And because the contract is shorter than some other types of finance, it also means you get to change your car or van more frequently. With a lease, you can also add a maintenance package to give you complete peace of mind, we offer a range of add on products to satisfy this need.
Benefits of PCH
- Your monthly payments are usually cheaper than other types of finance meaning you can drive a more expensive car
- You don’t have to worry about depreciation and resale values
- There’s nothing to pay at the end if you haven’t exceeded your agreed mileage and there’s no damage to the car outside of fair wear and tear
- You can add maintenance packages to your agreement, removing any worry of servicing, MOTs and tyre life
- No deposit options are available on all Hippo personal leasing agreements
What should you consider?
- You’ll never own the car outright
- If you exceed your contracted mileage or your vehicle is damaged beyond fair wear and tear, you’ll face additional charges
Hire Purchase (HP)
You enter into an agreement over a fixed period at a fixed instalment. Upon payment of the final instalment the vehicle becomes yours. A balloon payment can be incorporated as can low deposits.
The Benefits of Hire Purchase:
- An alternative funding line to bank overdrafts.
- Ownership at the end of the contract
- Low initial outlay
- Flexible contract
- Interest reclaimable against tax
- Writing down allowance
- Fixed monthly cost
- Business capital not tied up in a depreciating asset
Lease Purchase
Lease Purchase or non-VAT – registered companies and private individuals that want eventual ownership of the vehicle. A funding agreement where the company or individual acquires ownership when all payments, including the purchase payment have been made. Part of the capital cost of the vehicle payment may be deferred into a Balloon Payment at the end of the agreement, which equates to the anticipated market value of the vehicle at the end of the agreed leasing period.
The Benefits of Lease Purchase:
- Fixed monthly cost
- Ownership at the end of the lease
- Flexible contract
- Balloon Payment
- Low initial outlay
- Business capital not tied up in a depreciating asset
- Finance not subject to VAT
- Interest reclaimable against tax
- Writing down allowance
Contract Hire
The most popular choice for VAT – registered and non VAT – registered companies that want minimum outlay and maximum control of costs, especially when the maintenance and relief vehicle options are included. With this VAT – beneficial financing package, one regular rental payment covers all risks, including costs of depreciation and disposal, for an agreed period of time and mileage. Roadside rescue, maintenance and relief vehicle provision are options that can be added and changed to the monthly rental.
The benefits of Contract Hire:
- Up to 100% tax deductible depending on cost of vehicle
- Low initial outlay
- Flexible contracts
- No residual risk
- No disposal issues
- Optional relief vehicle whilst yours is off the road
- Capital not tied up in a depreciating asset
- Off-balance sheet borrowing/accounting
- Fixed cost and optional maintenance
- VAT on rentals reclaimable
Finance Lease
Ideal for VAT – registered companies who want to handle the administration of their vehicles, and have the asset shown on their balance sheet. A VAT – beneficial option where the hirer can choose to pay the entire cost over the agreed lease period, plus an interest charge, or pay lower monthly rentals during the lease period with a final payment based on the anticipated resale value of the vehicle.
The benefits of Finance Lease:
- Ownership at the end of the contract
- Fixed monthly costs
- Flexible contracts
- Low initial outlay
- VAT on rentals reclaimable
Contract Purchase
For companies with high-value cars who would like the option to purchase the vehicles, but don’t want any depreciation risks. The customer acquires the vehicle by paying fixed monthly instalments with the asset being shown on the company balance sheet, and can either retain ownership at the end of the contract or hand the vehicle back.
The benefits of Contract Purchase:
- Low initial outlay
- Eventual ownership
- No residual risk
- Interest charges claimable against tax
- More capital to invest in your business
- Flexible contract
- Optional final payment
- Rentals allowable against tax
- Writing down allowance
- Fixed monthly costs
- No disposal problem
- Optional maintenance package
- Optional relief vehicle
Lease Purchase
Lease Purchase or non-VAT – registered companies and private individuals that want eventual ownership of the vehicle. A funding agreement where the company or individual acquires ownership when all payments, including the purchase payment have been made. Part of the capital cost of the vehicle payment may be deferred into a Balloon Payment at the end of the agreement, which equates to the anticipated market value of the vehicle at the end of the agreed leasing period.
The benefits of Lease Purchase:
- Fixed monthly cost
- Ownership at the end of the lease
- Flexible contract
- Balloon Payment
- Low initial outlay
- Business capital not tied up in a depreciating asset
- Finance not subject to VAT
- Interest reclaimable against tax
- Writing down allowance
