Finance

One Stop Vehicle Services is the West Country's leading finance brokerage. Established in 1997 and trading within World of Cars since 2002. We pride ourselves in providing a quick, modern and innovative service.

We work with both large dealer groups, small independent garages and direct with private customers. We provide an unrivalled service in sourcing vehicle finance for customers who may not fill the requirements of main stream lenders.

Understanding Car Finance

Borrowing to pay for a car can at first appear to be very confusing with so many options available. Here we take a look at some of those jargon terms and help to make life easier for you to make the right choice.

Hire Purchase

One of the most popular methods of buying a new car. When a car is purchased using hire purchase, the customer and the finance company enter into an agreement regarding the car for a fixed term. (Lets say 3 years).

You will make fixed monthly repayments for that period and at the end of the term the car will belong to you. When you sign the finance paperwork it will clearly state the cost of the car, the deposit and the amount of interest you will be charged for borrowing the money. The car is used as security for the loan, similar to a mortgage on a house.

Personal Loan

With a personal loan you borrow an amount of money normally at a fixed rate of interest and a fixed term. A personal loan is not secured on the vehicle so repayments must continue on the loan until the balance is repaid in full, regardless of whether you still own the car or not.

Personal Contract Purchase

This is slightly different from HP (Hire Purchase) and a Personal Loan. With PCP (Personal Contract Purchase) you pay a deposit on the car and then fixed instalments for a fixed term.

(Lets say 2 years) At the end of the two years having made the repayments you will have one last balloon payment. A balloon payment is one larger payment to pay right at the end of the agreement. (This could be say 35% of the purchase price. Known as GFV guaranteed future value) You must then decide to either make the payment, or give the car back to the finance company.

Should you return the car, you would be free to enter into another agreement.

Payment Protection Insurance

Sometimes called PPP or PPI for short. PPP is a way of protecting your monthly payments.

If you had an accident, fell ill or lost your job, your monthly repayments would be the last thing you'd want to worry about. There are a range of plans available and our qualified Business Managers are available to offer advice on which one suits you best.