Finance Plans Explained
From Elect 3 to hire purchase, here's everything you need to know about financing your next car. It might seem daunting, but in reality it's just a simple two-stage process. The first stage is to decide on the type of car deal you want: loan, lease, hire purchase, or dealer finance. Then it's a simple matter of choosing the provider whose product best suits your needs.
Elect 3 Finance
Elect 3 is a Personal Contract Plan (PCP) from Citroën Financial Services designed to give you a new car experience as often as possible. We can structure monthly payments to suit your budget, and they'll often be lower than other types of vehicle f.inance as you only pay a part of the vehicle price over the term of the agreement.
Because it's so flexible, Elect 3 is suited to drivers with a range of different requirements. Whether you're after lower monthly repayments and the security of Guaranteed Minimum Future Value (GMFV), or the pleasure of driving a brand new Citroën every three years, we can prepare the perfect package for you.
How it Works
Begin with the fun part - by choosing your favourite Citroën. You can then decide how big a deposit to put down, and how far you're likely to drive during the agreement term. We'll calculate the Guaranteed Minimum Future Value (GMFV†) of your chosen car, and the difference between this and your deposit. With Elect 3, the GMFV† amount is taken off the repayable f.inance and the vehicle's On the Road Price is covered by your monthly payments (plus interest). Elect 3 takes the guesswork out of buying a new car, giving you peace of mind by guaranteeing its future value and deducting it from your repayments.
At the end of your 3 year contract
When your 3 year contract is up you have 3 options.
Trade in your car and switch to a brand new Citroën. Take the wheel of a gleaming new car. Once your agreement ends you can choose to part exchange your current model for an all-new Citroën, allowing you to pick one of the latest cars with leading-edge technology. As we'll have guaranteed your car's minimum future value, you won't have to worry about depreciation. And if your car's worth more than the GMFV† you can use the difference as a deposit on your new Citroën.
Buy your car and take full ownership. If you're taken with your Citroën you might want to buy it outright when the contract comes to an end. If you've kept up-to-date with your monthly payments you can buy the car by paying the GMFV† and an option to purchase fee, and then drive into the sunset - no strings attached.
Return your car. Decided that the scheme isn't for you? When the agreement term ends you can simply return your car to Citroën, without paying a penny more. Just make sure that you don't go over the agreed mileage limit, and that you return the car in a reasonable condition.
†The Guaranteed Minimum Future Value (GMFV) is payable if you renew or retain the vehicle at the end of the agreement. Further charges may be applied by your Citroën Dealer subject to kilometre limits/condition of the vehicle.
Citroen Payment Waiver
The latest innovation from Citroen is Payment Waiver, this is how it works. In the event of involuntary redundancy, Citroen Financial Services may waive up to 6 monthly payments. If you take out any one of our finance agreements, you will benefit from payment waiver. This means if you are made redundant involuntary, they may waive up to 6 of your monthly repayments, allowing you to keep your car and protect your credit rating. There are no hidden costs and you are not required to pay back any waived instalments. Ask your Sales Executive for more details.
Citroën has developed Citroën SimplyDrive to offer our customers a finance option that provides 3 years of motor insurance, routine servicing, roadside assistance, warranty and road fund licence, all included in one fixed monthly payment. Citroën SimplyDrive is available on the majority of models funded on Personal Contract Purchase.
At the end of 3 years you then have the option to enter a new agreement on another new vehicle or choose another end of agreement option.
HOW DOES CITROËN SIMPLYDRIVE WORK?
- Select the Citroën vehicle that’s right for you.
- Choose your annual mileage (6,000 to 30,000).
- Select the amount you wish to contribute as a deposit (between 0% and 40% of the vehicle price).
- We will calculate the monthly payment for the full 3 year term of the agreement.
- Your monthly payment will include a contribution towards the cost of your motor insurance. This is based on the age of the youngest driver, your residential postcode and model selected.
Additional charges may apply at the end of the contract subject to the vehicle condition and excess mileage.
SimplyDrive Key Features
3 Years' Finance
The Personal Contract Finance product has a full term of 36 months, with 35 monthly payments followed by 1 optional final payment.
3 Years' Comprehensive Motor Insurance
With Citroën SimplyDrive your motor insurance policy will be automatically renewed to ensure you benefit from three years continuous cover (subject to underwriting criteria). Better still, your premium will remain fixed for the duration of your contract. (We do reserve the right to increase your premium should you add a younger driver to your policy mid-term).
3 Years' Routine Servicing
Keeps your car running in tip-top condition with servicing carried out by the specialists at your local Citroën service centre.
3 Years' Roadside Assistance
Just in case...
3 Years' Road Fund Licence (if applicable)
Your first year’s road fund licence is included and your dealership will give you a cheque to cover the costs of years two and three (based on current duty rates at time of purchase).
3 Years' Warranty
Just in case...
3 Years' Payment Waiver
In the unfortunate event of you being made redundant involuntarily, Citroën Financial Services will waive up to 6 monthly instalments giving you time to find alternative employment. If you are still unemployed after 6 waived instalments you are given the option to hand your vehicle back without further financial liability. (Subject to terms and conditions).
ALL FOR ONE MONTHLY PAYMENT
Contract Hire is a great option for businesses that want to keep a close eye on their fleet costs. For an initial deposit followed by monthly payments you can cover most of your motoring costs, including the Road Fund Licence. Many of our customer also take advantage of a maintenance package that will cover the routine services. The only other costs you will need to add are your fuel and to ensure the vehicle is covered by a comprehensive insurance policy.
In Summary Contract Hire offers:
- Fixed cost, inflation free motoring.
- No Residual value risk.
- Low initial outlay.
- Cash Flow benefits for business users.
- Ability to renew vehicles for minimal outlay.
- Allows vehicles to be kept up to date and vehicle fleet fresh.
Personal Contract Hire
Personal Contract Hire (PCH) is a type of long-term rental that will suit you if you’re not looking to buy the car at the end of your contract. You lease the car for an agreed period of time by making fixed monthly payments. When the contract expires, you simply return your car or take out a new contract on a new vehicle.
- It’s hassle free, as you can drive away a new car without worrying about the warranty running out, or how you'll re-sell it.
- Your monthly payments on the car will be much lower than if you were buying it.
- It's flexible - you can change your car easily, and you will have access to new cars that you may not have been able to afford to buy.
Things to bear in mind
- There’s no option to buy the car at the end.
- You will need to agree an approximate mileage estimate at the beginning of your contract - there may be a mileage charge if you exceed this.
- You’ll have to take out comprehensive car insurance - it's not included in your contract.
Under HP agreements, there's a deposit to pay – typically 10% – followed by fixed monthly payments. The car is owned by the HP company until the final payment – and any 'option to purchase' ownership-transfer fee – has been paid. Up to that point, the person making the payments has no legal right to sell the vehicle.
Nevertheless, some 'owners' do sell 'their' cars before the final payment. The good news for buyers of these 'non-paid-up' HP cars is that the law clearly protects private purchasers who buy without notice of any undischarged HP agreement.
No matter what the police or anyone else might tell you, you'll get a good title to the car if you buy an HP car under these circumstances. The finance company can take action against the seller if they wish, but it's not your problem.
The credit on an HP agreement is secured against the car, so it's like dealer finance in that the only the car can be seized in the event of a default. If you need to sell the car before the end of the agreement, you'll have to repay the outstanding debt first – and 'early settlement' fees may apply.
Go for HP if you say yes to one or more of these statements:
- Eventual ownership is important to you
- Your budget and circumstances suit fixed monthly repayments
- Your disposable income is likely to decrease over the agreement term (eg if you're planning a family)
- You like low-risk credit secured against the car only
- You don't mind not owning the car until the debt is fully repaid
Control the cash flow for your business. With Citroën Finance Lease, you simply pay a monthly rental to lease your car or van for the contract period. You can tailor your rentals to match your business cash flow and budget with the help of a 'balloon' (if needed).
AT THE END OF YOUR AGREED LEASE PERIOD, YOU CAN EITHER:
- Sell the vehicle on our behalf, and once you've settled any balloon payment, we'll refund 100% of the sale proceeds to you as a rebate of rentals
- Pay a 'peppercorn' rental (this is equal to one month's rental, payable per annum), and use the vehicle for a further year
ADVANTAGES OF CHOOSING CITROËN FINANCE LEASE:
- Cost effective - Low initial outlay, (usually three or six months in advance) and a fixed monthly cost, with the option to reduce your monthly rentals using the 'balloon' facility.
- Flexible - You can tailor the agreement term to suit your business needs.
- Included Extras - Road Fund Licence and Citroën Assistance (see below) included as standard throughout the primary rental period.*
- Optional service and maintenance cover - Service, repair, breakdown and tyre costs (including punctures) are all included for a fixed, monthly rental.
*Excluded from secondary 'Peppercorn' rental period