Frequently Asked Questions

Please read some typical questions below to find out more about car finance and Ignition Credit Plc.

Q. The Dealership that I am purchasing my car from also provides finance packages, what are the advantages of using Ignition Credit Plc?
A. Providing the best possible finance packages & service to our new & existing customers has been our business for over 30 years. We do not have the high overheads like many of the dealer showrooms, which enables us to offer you the very best solution available.

Q. What is a Residual Value/Balloon payment?
A. This type of facility allows for a proportion of the vehicle's value (depending on age, value & term) to be deferred to the end of the finance agreement.

Q. What effect does a Residual/Balloon payment have on my repayments?
A. This will significantly reduce your monthly payments, enabling you to purchase a more expensive or higher specification vehicle than you may have originally budgeted for.

Q. What if I want to sell the car before the end of the finance agreement?
A. No problem, you can contact us at any time for a settlement figure to repay the balance & if you are thinking of buying another car we would welcome the opportunity to assist you in the purchase of your new vehicle.

Q. I have been quoted a flat rate of 6% by the dealership. Is this the same as the APR?
A. No, the rate you have been quoted is the interest rate charged per annum (PAF). The Annual Percentage Rate (APR) is the compounded rate used to give a standard comparison of the amount of interest & charges you are likely to pay on loans. A statutory method of calculating the Annual Percentage Rate of charge to repay the total charge for credit over the period of the loan.

Q. Do I need a deposit?
A. Sometimes but not always. Once we have your full details & the vehicle you are looking to buy, we can determine if any deposit is required and if so, how much.

Q. Who can apply?
A. Any Company, or individual over 18 years of age.

Q. I have been quoted on repayments on a PCP agreement by the dealer, is it the same as Lease Purchase?
A. The structures of the two facilities are very similar, however with a Personal Contract Purchase (PCP) the Balloon/Residual payment is guaranteed by a third party. This amount is subject to certain criteria such as mileage contract & service schedules, the balloon may also be lower as a result. With a Lease Purchase the Balloon/Residual is still structured around its perceived value but there are no restrictions on mileage, etc, which means the value may sometimes be higher, thus reducing monthly payments. At the end of the agreement the balloon must be paid by the customer or simply off-set against the part-exchange value when purchasing a new car, either at the end, or at anytime throughout the period of the loan.

Q. I can't find the car of my dreams, can you help?
A. Yes we have a number of "preferred suppliers" that will do all they can to make that dream car purchase come true.

Q. Do I need to provide any security?
A. It is very unlikely. The security in the car should be sufficient.

If you have a question that is not covered here, please ask your question by using the enquiry form on our contact page.