Heading
Close X
Menu
Here at Milcars Mazda, we provide a wide range of finance options designed to suit all kinds of budgets. With our flexible car finance offers, we aim to make it as easy as possible for you to select your ideal Mazda – and to pay for it in a way that you can comfortably afford.
Whether you’re a private motorist or business user, we have you covered. And don’t worry if the world of car finance feels somewhat alien – you’re far from alone. Our financial experts are here to assist you and offer all the advice you need and want. We keep things simple while covering every detail. By fully taking into account your particular requirements, we’re able to provide you with a perfectly tailored finance solution.
We offer four types of finance options: Personal Contract Purchase, Hire Purchase, Lease Purchase and Contract Hire. Each comes with its particular merits and demerits, and following a relaxed consultation, we’ll be able to help you choose the one that’s most appropriate for your needs.
Our wide-ranging finance plans cover our new and Approved Used Mazda cars, which means you’re provided with a wider choice of vehicles than you might have expected.
Personal Contract Purchase (PCP) monthly payments are typically lower than are available with HP, and at the end of the agreement, you have the option to buy the vehicle outright. Where PCP mainly differs from HP is that monthly repayments pay off the car’s depreciation. That is to say, they don’t contribute towards its total value.
Just before the agreement is due to end, you’ll need to make a final balloon/Minimum Guaranteed Future Value (MGFV) payment if you want to keep the car. In this respect, PCP is similar to leasing a car. The main difference is that it provides you with a choice, which leasing doesn’t.
Before an agreement is made, the MGFV needs to be agreed – this represents the car’s anticipated value when the contract ends. Essentially, this means that repayments constitute the difference between the car’s current value and its value at the end of the agreement (i.e. the depreciation) plus interest.
Consequently, PCP payments tend to be lower than HP payments. However, it’s worth bearing in mind that you’ll need to make a final balloon payment should you wish to keep the car.
Once the agreement has concluded, you’ll have three options:
PCP pros:
If you want to keep the car, you’ll need to make a final balloon/MGFV payment. A mileage allowance needs to be established before the contract is drawn up. If the limit is subsequently exceeded, you may incur excess-mileage fees. You can only sell your Mazda once you’ve settled the finance. The car won’t be yours until all payments have been made. It’ll be your responsibility to keep the car correctly insured and maintained until the full value is paid off.
Usually, yes. You will be required to pay off any negative equity (the difference between the car’s pre-agreement value and what is still owed). On the other hand, if the car’s worth more than its MGFV at the end of the term, you’ll have positive equity, which can be put towards an upgrade, if you wish.
Hire Purchase (HP) provides you with the Mazda car you want before you’ve fully paid for it. HP makes ownership easy to budget for, by allowing you to pay affordable monthly instalments; it’s also a good way to proceed towards outright ownership. There’s no annual mileage limit, which means no excess mileage fee.
Any debt involved with HP is secured against the car – so, if your credit rating isn’t especially strong, it’s a better option than, say, a personal loan.
HP pros:
Since you’re paying off the full value of the vehicle, monthly payments will likely be higher than PCP equivalents. You won’t be able to sell the car until the finance has been fully settled. The car won’t be yours until all repayments have been made. It’ll be your responsibility to ensure the vehicle is properly insured and maintained, until the full value is paid off.
The short answer is yes, you can end your finance early. There are different provisions within each finance agreement that allows you to do just that. If you have got through two-thirds of the way through your finance agreement, the options to end the finance agreement early open up.
For a Hire Purchase agreement, there is an option of paying it off early through a settlement fee. A settlement fee covers the cost of any remaining unpaid instalments and interest payments remaining on the agreement. Once the settlement fee is paid, you take full ownership of the car early.
Under a Personal Contract Purchase agreement, you can also pay a settlement fee for bringing the agreement to an end early. After that, you can choose to hand the car back or you have a second option. Through a PCP agreement, you can take full ownership of the car by paying off the remaining Guaranteed Minimum Future Value also known as a balloon payment.
