A QUICK GUIDE TO VEHICLE FINANCE
At Rossetts Commercials we are a credit broker and not a lender. To assist you with your vehicle purchase, we can introduce you to two lenders (and their finance products), both of whom we have a pre-existing relationship with (we do not source the whole market). In the event both lenders choose not to provide credit, we will refer you to a broker to attempt to source credit for you. Note however, the available terms from this broker may well be inferior to the two lenders we initially introduced you to.
We act as an agent on the lenders behalf when making this introduction. We are not an independent financial advisor and therefore, no advice or recommendation will be made. You must decide whether the finance product you choose is right for you.
We do not charge you a fee for this introduction, but we will receive a commission from the lenders we work with (either a fixed fee or a fixed percentage of the amount you borrow). The lenders we work with could pay commission at different rates. Some lenders may also provide preferential rates to us for the funding of our vehicle stock and also provide financial support for our training and marketing.
For regulated agreements under the Consumer Credit Act 1974, if you would like more information on the commission payable prior to you entering into the agreement, please email your request to the email shown below within the section for contact details. For your reassurance, the amount of commission we receive from a lender does not have an effect on the amount that you pay to that lender under your credit agreement. The lender will always set this.
DO YOU WANT TO OWN IT? - Hire Purchase
A straightforward route to ownership. It allows you to spread the overall cost for a fixed term. The vehicle is an asset on the balance sheet but without significant drain on working capital.
How does Hire Purchase works?
· At the start of the agreement you decide on the amount you would like to put down as a deposit, based on a minimum of the vat of the vehicle, on your chosen vehicle and agree the term of the agreement
· Throughout the term of the agreement you pay the regular instalments over the agreed term until the remainder of its value is repaid.
· At the end of the agreement you pay your final payment and purchase activation fee and you will own your vehicle outright
· The loan itself is secured against the car. This will make obtaining finance easier than trying for an unsecured loan. You should bear in mind that monthly repayments will be higher than they would be during a personal contract purchase and you will not own your vehicle until the last payment has been made. The loan provider could repossess your vehicle at any time if the payments are not kept up. In the event of the vehicle being sold before the end of the agreement you would still be required to pay the loan back in full.
· Works for all customer types from private individual to PLCs
DO YOU WANT TO LEASE IT? - Contract Hire
This gives the ability to enjoy driving a Mercedes-Benz without having to take on full ownership. With Contact Hire the vehicle is leased for a fixed period and for a fixed monthly rental, which includes the cost of the road fund licence.
How does Contract Hire work?
· At the start of your agreement you decide on the length of your agreement and predicted annual mileage and pay an advance rental upfront
· Your monthly rentals are based on the difference between the initial value of the vehicle and its projected residual value at the end of your agreement. Therefore, only a proportion of the vehicles value is repaid, keeping your monthly rentals lower. As a business customer you may be able to claim the vat back on the rentals
· You can also include the cost of the vehicles maintenance into your monthly rentals, choosing from: Full maintenance / Full maintenance with tyres or service only. This means you costs are fixed over the term of your agreement – excellent for budgeting and risk of any unexpected costs.
· At the end of your agreement you return the vehicle – subject to it being in line with our return standards such as vehicle condition / excess mileage etc may be payable
· This method of finance can be useful for companies wanting to free up credit lines or improve cash flow by implementing fixed cost fleet operation.
Finance Lease
The vehicle will appear as an asset on the balance sheet, without the option of ownership as the vehicle is hired for a fixed period.
How does Finance lease work?
· At the start of your agreement you decide on the length of your agreement and pay an advance rental upfront – based on the vehicles value over the term of the agreement
· Alternatively you could opt for a lump sum payment – features a large payment that is due at he end of the agreement which will reduce your regular payments. A “Balloon payment”
· You make regular instalments until your agreement comes to an end
· As a business customer you may be able to claim the vat back on the rentals
· At the end of the agreement – 3 options: 1. Extend the agreement; 2. Sell the vehicle to an independent 3rd party 3. Return the vehicle & get 95% of the proceeds
Operating Lease
A solution for those who want to drive one of our vehicles over a fixed term, with lower monthly rentals and without the worries or commitment of ownership.
How does a Op Lease work?
· At the start of your agreement you decide on the length of you agreement and predicted annual mileage, and pay an advance rental upfront
· Your monthy rentals are based on the difference between the initial value of the vehicle and the projected residual value at the end of your agreement. Therefore, only a proportion of the vehicles value is repaid, keeping your monthly rentals lower.
· At the end of the agreement you return the vehicle – excess milage / damages charges may apply if outside our vehicle return conditions standard.
UNDECIDED? - Agility Product (PCP) – Van only
Agility to gives you the flexibility and freedom to choose – you can purchase, return or part exchange your vehicle at the end of the agreement. You are simply deferring the decision to the end of the contract term.
How does PCP work?
· Choose the term of your agreement and pay a deposit
· Pay monthly payments throughout your agreement
· Decide if you’d like to purchase, return it or part exchange it for a new one…as simple as that!
· Monthly payments are based on only repaying part of the vehicles intial value, keeping payments lower.
· Our optional purchase payment avoids being any higher if the value of the asset in the used vehicle market falls
· Your in control – you can decide depending on your circumstances at the time.
· Ideal for private individuals / small businesses – customers with less financial flexibility looking for a product with affordable options to cater for changes in circumstances
Van: MBFS
You can contact MBFS by using the online form link below. Online form
Alternatively, you can reach MBFS by the following:
Mercedes-Benz Financial Services UK Ltd Tongwell, Milton Keynes MK15 8BA
Or call us on: 0370 847 0700