Name: Hippo Motor Group
Address: Unit 26, Trident Park, 3 Trident Way, Blackburn, United Kingdom, BB1 3NU
Telephone: 01254 919000
Price range: £0-£100000

Once you have decided on the vehicle you wish to purchase, it is important to make a correct decision on the finance
option that suits your circumstances. Hippo Motor Group’s specialists will assist you in understanding the funding
options available to you, but we are not authorised to give advice. The below is a summary of those products with
details of the potential benefits and limitations of each.

Please ensure that you fully understand the agreement you decide to enter in to.

	Outline	Features	Potential Limitations
Hire Purchase (HP)	A simple method of financing that gives you the certainty of a fixed interest rate and fixed monthly payments throughout the agreement. The initial deposit and repayment period can be structured to help meet your budget and the length of time you expect to keep the vehicle. The deposit can be constructed from the trade-in value of your current vehicle or in cash.	Fixed monthly payments Ownership is transferred to you once the agreement and fees are fully paid This type of agreement is covered by the Consumer Credit Act 1974 which would allow lump sum payments to be made during the term of the agreement Early settlement is possible if the balance of the agreement is repaid Early termination rights available under CCA 1974	The agreement is secured against your vehicle, which means that if you fail to keep up with repayments, the vehicle could be repossessed If you put down a lower deposit, there could be a higher risk of negative equity if you decide to settle early or want to change the vehicle before the end of your finance agreement
Contract Purchase (PCP & CP)	A form of Hire Purchase (as above) but where a proportion of the cost is deferred to the end of the agreement enabling lower monthly payments during the main term of the agreement. The deferred amount is referred to as a Guaranteed Future Value (GFV) or Optional Final Payment. Your anticipated annual mileage will be discussed with you to determine the GFV. At the end of the term, when the GFV remains, you will have three options: Pay the GFV in full and keep the vehicle. Trade the vehicle in against a new vehicle purchase where the deposit will be any equity value left once the GFV is settled. Return the vehicle with nothing more to pay (subject to condition and mileage terms in the agreement).	Fixed monthly payments Potentially lower monthly payments than a HP agreement Term of the agreement can be fixed to the term you wish to keep the vehicle Ownership is transferred to you once the agreement and fee’s are fully paid AT This type of agreement is covered by the Consumer Credit Act 1974 which would allow lump sum payments to be made during the term of the agreement Early settlement is possible if the balance of the agreement is repaid Optional maintenance cover available with selected vehicles Early termination rights available under CCA 1974	The agreement is secured on your vehicle, which means that if you fail to keep up with repayments, the vehicle could be repossessed If you put down a lower deposit, it could mean a higher risk of negative equity if you settle early or want to change the vehicle before the end of your finance Due to depreciation, it is possible that there will be no equity in the vehicle at the end of the term An excess mileage fee is payable at the end of the term if you exceed the agreed mileage parameters and wish to return the vehicle
Contract Hire (PCH & CH)	Contract Hire is a form of leasing, meaning that you effectively hire a vehicle over an agreed period. The vehicle will be returned to the leasing company at the end of the agreement. The monthly rental is determined by the depreciation of the vehicle over the agreed term of hire and contracted mileage.	Fixed monthly payments No vehicle disposal concerns Potential low deposit (known as advance rentals) Maintenance packages available should you wish to include the cost of servicing in your agreement	No option of vehicle ownership or early settlement There will be a vehicle arrangement fee Upon return, the vehicle is subject to a suitable condition check and there may be charges for collection or damage An excess mileage fee is payable at the end of the lease term if you exceed the agreed mileage parameters Usually no early termination clause
Cash	A cash product is where the vendor pays for the vehicle outright by using sources of cash, such as savings, personal loan obtained elsewhere, gifted, inheritance, etc.	No monthly disposable income concerns Not tied to repayment options No interest rates Own an asset from the offset	Credit card payments could incur a surcharge of 3% All transactions need to be from the same card The maximum cash limit we can take is £3,000.00 Miss out on preferential rates with our lenders Using your disposable funds to fund a vehicle
Finance Lease	A Finance Lease is a method of financing a vehicle, but they remain the property of the finance company that hires them and the user pays for the hire of the vehicle. The finance company charges a rent as their reward for hiring the vehicle to the customer. The finance company retains ownership of the vehicle, but the customer gets exclusive use of the vehicle (subject to meeting the terms of the lease). A Finance Lease transfers all risks and reward of ownership of the vehicle to the customer. Using a Finance Lease means that the vehicle will appear on the customer’s balance sheet, with outstanding rentals represented as a liability.	Minimum capital expenditure Accurate monthly budgeting No damage recharge as you are responsible for the disposal of the vehicle Finance Lease is a popular choice for VAT registered companies as they can claim back 50% of the VAT on the finance element for cars and generally 100% for LCV’s (subject to no private use) On contracts with maintenance, the service element VAT is 100% recoverable Rentals can be offset against the company’s profits Optional maintenance packages, breakdown cover and replacement vehicle cover are available	You will never own the vehicle as the vehicle must be sold to a third party at the end of the agreement Operating risks associated with the vehicle You must have fully comprehensive vehicle insurance
Lease Purchase	Lease Purchase is a form of conditional sale agreement. This means that the regular payments are similar to a lease/rental agreement, but you will own the vehicle at the end of the agreement. You may be asked to pay a number of monthly payments at the start of your agreement (referred to as ‘advance payments’ and the leasing equivalent of a deposit) and a sum is usually deferred to the end of the deal. The final payment will be determined by the age and mileage of the vehicle at the end of the agreement.	Low initial payments Fixed mileage contracts Ideal for non-VAT registered customers who want ownership of the vehicle at the end of the agreement Effective budgeting with balloon payment facility if required Ownership of the vehicle happens once the balloon has been paid in full at the end of the contract Monthly payments are not subject to VAT The vehicle will become an asset Lease Purchase frees up funds for other aspects of your company The vehicle will appear on your balance sheet and you can record the value against your tax profits	The balloon payment must be paid at the end of the contract The vehicle is yours when you have paid the balloon payment In some instances, the balloon can be higher than the actual value You must have fully comprehensive insurance cover

Information on our Vehicle Finance Options for Retail

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