The Best Deals On VW Car Finance

Capital Car Finance Specialise in a range of VW Car Finance including, VW PCP Finance, VW Lease Purchase and VW New Car Leasing.

Capital Car Finance is an independent finance provider offering customers a choice of new and used car finance products. Because we are not linked, associated or connected to a manufacturer, it means we have access to a number of UK car finance providers, enabling us to offer customers some of the most competitive funding products in the market today.

VW Car Finance - Introduction

Capital Car Finance have an excellent choice of car finance deals for both new and used VWs, our VW Personal Contract Purchase [PCP] and Lease Purchase [LP] car finance deals have been benefitting our customers for many years (See our testimonials) and now with the introduction of our VW car leasing and VW contract hire products, we have something to offer everybody whether you are a private individual or a business.

We pride ourselves on our transparent "one to one" professional approach, which is why a lot of our customers come back to us time and time again, please see our testimonials for more information. Our funding products are available for all new & used VW vehicles up to 3 years old, providing they are supplied by an approved UK VW dealership.

Please find below details on all our VW car finance products we can offer, alternatively why not give us a call to discuss the various options with a dedicated and experienced adviser, you can call us on our freefone number 0800 043 4340 or national 01925 589020 number.

VW PCP Finance - What is it and how does it work?

PCP Car Finance has become a very popular choice for VW customers, PCP [Personal Contract Purchase] allows you to purchase any VW car of your choice at an affordable fixed monthly payment, with an initial low deposit and a guaranteed minimum future value (GMFV) or buy back at the end of the contract period.

Capital Car Finance specialise in low rate PCP deals for new and used VW with rates from just 7.9% APR, together with industry leading GMFV's making VW cars very affordable to most people.

VW PCP Car Finance is very useful product if you drive a company car and are looking to opt out of your company car scheme for example if you get a cash allowance from your company (Cash for Car), because you can use your company car allowance or mileage reclaims to fund your PCP monthly payments and avoid paying excessive company car tax.

With PCP your monthly payments are fixed for the repayment term, which is normally two, three or four years and because PCP is very flexible it offers several options at the end of the contract term:

Option A - Return the vehicle to the finance company

If you think your VW is worth less than the GMFV you can simply return it to the finance company. As long as your VW is in good condition and has not exceeded the agreed mileage set at the beginning of the contract, you have nothing more to pay, the finance company guaranteed this future value and they will absorb any loss.

Option B - Keep the vehicle

If you want to own your VW, you can simply pay off the outstanding GMFV final payment to the finance company.

Option C - PX the vehicle with a dealer

You can part exchange your VW with any motor dealer for another vehicle purchase, regardless of whether it is an VW or not and if the trade-in value is greater than the final GMFV, this sum can be used as a deposit on your next car finance agreement, alternatively, you can sell the VW privately and keep any profit over and above the final GMFV.

Benefits of VW PCP Car Finance (Personal Contract Purchase)

• Low initial deposit outlay.
• Flexible deposit terms.
• Fixed payments for the contract term.
• Guaranteed minimum future value (GMFV) at the end of the contract.
• Lower monthly payments.
• Ability to settle the contract at any time with minimum penalties.

The VW personal contract purchase plan benefits customers from driving a higher specification VW for lower fixed monthly payments, unlike traditional methods of car finance like HP for example, this is achieved by deferring a lump sum percentage of the total price of the VW to the end of the agreement, which is called the guaranteed minimum future value or GMFV as its more commonly known.

This GMFV is the key difference between PCP and traditional forms of car financing. The GMFV plus your deposit are deducted from the selling price of your VW and the monthly payments are based on the balance left (plus interest on the balance and the GMFV). Effectively, payments are kept to a minimum simply because you are essentially only funding the depreciation of the vehicle.

Excess Mileage Charge

At the beginning of the contract, you decide on the total mileage you expect to cover for the period of the contract. If at the end of the contract you decide to return your VW to the finance provider and have covered more mileage than agreed at the start of the agreement, you will pay a mileage excess charge by paying a fixed amount for every extra mile you have exceeded, this is ONLY payable should you return the vehicle to the finance company and NOT if you PX it in to a dealer.

Wear and Tear

It is in your interest to minimise the 'wear and tear' on your VW and not exceed the agreed mileage. When the agreement has finished, the vehicle may well be worth more than the GMFV set at the start, providing you with extra value, In simple terms 'normal wear and tear' means that for its age and mileage, the VW is in fair working order, condition and repair.

VW Lease Purchase - How does it work?

Lease Purchase is sometimes referred to as HP or Hire Purchase with a balloon and is structured in a similar way to PCP Car Finance.

Customers normally benefit from a slightly lower finance rate with an VW lease purchase car finance product as there is no guarantee offered at the end of the period, the lump sum at the end of the contract is known as the Residual Value (RV) or balloon, but is required to be paid by the customer for outright ownership of the VW. Deposits for Lease Purchase are very flexible but usually a minimum of 10% and a maximum of 40% of the total vehicle sales price, repayment periods are typically taken over 3 or 4 years.

The RV (sometimes called the balloon) at the end of the contract reduces the regular monthly payments accordingly, thus making vehicles that traditionally have a strong Residual Value (RV) like VW, more suitable for this type of product as they make repayments more affordable.

The Residual Value (RV) is calculated and set at the start of the lease purchase finance contract but is not payable until the end of the agreement, there are realistically two options for an VW lease purchase at the end of the term, 1. Pay off the final residual value in cash or settlement by part-exchange or 2. Some lenders will allow the residual value to be spread over a secondary period or refinanced again.

Benefits of VW Lease Purchase

• Lower deposits available.
• Cost effective payments due to stronger residual values.
• No tie in to mileage contract.
• No lock in and settlement can be made at any stage of the agreement.

VW Hire Purchase - How does it work?

VW hire purchase (HP) is very similar to borrowing a sum of money from a bank or building society and paying it back over a fixed period of time plus interest. Capital Car Finance have some of the best HP rates available to them with access to no fewer than 7 different lenders.

HP is a secured car finance product and the risk is secured against the vehicle until the final payment has been made, Hire Purchase is often preferred over alternative (unsecured) personal loans because they allow a greater borrowing limit and also as the agreement is regulated by the consumer credit act which offers customers better protection.

VW Car Leasing - How does it work?

New car leasing is becoming a very popular choice these days as it allows customers to drive a brand new car for a lower monthly payment and a small initial deposit, you don't have to worry about selling the vehicle either, simply return it to the leasing company at the end of the contract and walk away.

Car leasing is available for business and personal customers and is a long-term rental agreement, the contract can include service and maintenance, breakdown cover and a replacement vehicle and in most cases the road fund licence is included for the duration of the agreement. As car leasing is a rental agreement it will subject to VAT, if you are a VAT registered business you can reclaim this back from HMRC on your VAT return (100% for commercial vehicles and 50% for cars).

The monthly rental is calculated from the length of contract and the estimated miles driven, at the end of the period the vehicle is returned to the leasing company as the leasing company always the registered owner of the vehicle. It is treated as "off balance sheet funding" in a company's accounts.

New car leasing is completely risk free and almost always works out cheaper than outright purchase of a vehicle. This is due to the extra discounts and support received from manufacturers, which are passed on to the hirer and reflected in the monthly rental.

Contract Hire & Leasing Highlights:

• Fixed cost motoring
• Fully inclusive maintenance available
• Very cost effective
• VAT efficient - part or fully reclaimable
• Low initial payment
• Low monthly payment
• Complete no risk option

For more information on all our new VW car finance offers visit www.capitalcarfinance.co.uk