Q. I’m purchasing my car from a dealership, which also provides finance packages – what are the advantages of using Ignition Credit plc?
A. We’ve been in business for over 30 years, providing the best possible finance package & service to our new & existing customers. We don’t have high overheads like many of the dealer showrooms, which enables us to offer you the very best value solution available.
Q. What is a Residual Value/Balloon payment?
A. This type of facility allows for payment of a proportion of the vehicle’s value (depending on its age, value & the term of the agreement) to be deferred to the end of the finance agreement.
Q. What effect does a Residual/Balloon payment have on my repayments?
A. By agreeing to a Residual/ Balloon payment, you can 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 and 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 and charges you are likely to pay on loans.
With APR, you only pay interest on the amount of the loan that remains each year. With a flat rate the interest is charged on the original amount borrowed, no matter what’s been repaid, so in the last year you still pay interest on the whole amount, which works out more expensive in the long run.
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 whether 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. The main difference lies in the payment of the Balloon or Residual at the end of the agreement. With a Personal Contract Purchase (PCP) the Balloon/Residual payment is guaranteed by a third party. This amount to be paid is subject to certain criteria, such as mileage contract & service schedules, and 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. This means that the value may sometimes be higher, thus reducing monthly payments. At the end of the agreement the Balloon must be paid by the customer. Alternatively it can be 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” who 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.