Whether it’s for work or pleasure, we have a range of finance options to help get you on the road.
Our team will work to help find the right solution for you.
Hire Purchase
Personal Contract Purchase
Access Product
Lease Purchase
Finance Lease
Hire Purchase
Hire Purchase
- Hire Purchase (HP) is one of the most commonly used methods to finance motor vehicles.
- The agreement is structured with fixed monthly payments and a final nominal “option to purchase” fee on payment of which, the customer takes legal ownership of the vehicle from the finance company. Unlike personal contract purchase (PCP), no “balloon” payment is payable at the end if the customer wants to own the vehicle.
- If the customer has a large deposit to put down, HP may be a better option for a customer than PCP.
Personal Contract Purchase
Personal Contract Purchase
- Personal Contract Purchase (PCP) is a type of hire purchase agreement (HP) which is often used by customers wanting to change or upgrade their vehicle on a regular basis.
- The agreement is structured with regular monthly payments and a final “balloon” payment, being the estimated value of the vehicle at the end of the agreement, based on the agreed annual mileage and predicted wear and tear over the period. This is called the ‘Optional Final Payment’ (OFP), also sometimes referred to as the ‘Guaranteed Future Value’ or ‘GFV’.
- At the end of the agreement, customers will have four options:
- Pay the OFP and nominal option to purchase fee and own the vehicle outright;
- Part-exchange the vehicle for a replacement. Any surplus after paying the OFP could then be used as a deposit for a new agreement;
- Hand back the vehicle (for example, where the OFP is more than its actual value). If the annual mileage agreed at the start of the agreement is exceeded or if the vehicle is not in reasonable condition on its return, this may incur extra costs.
- Refinance the OFP via a new loan arrangement so that the customer can spread the cost over a period to suit their monthly budget.
- A deposit is commonly made with PCP but, for a larger deposit, HP may be a better option because the customer risks losing that “equity” in the vehicle if it is handed back at the end of a PCP agreement.
- PCP monthly payments will be lower than for HP on equivalent terms. But overall interest charges will be higher on a PCP because a portion of the credit advanced (in the form of the OFP) remains unpaid until the end of the term.
- You can find the options when your agreement is coming to an end here End of PCP Agreement Option Selection Form
Access Product
Access Product
- Access is a Mann Island’s own-brand hire purchase (HP) product designed specifically for private customers with a less than perfect credit history who wish to improve their credit profile.
- A higher interest rate than for standard HP may therefore apply but otherwise it operates in exactly the same way as HP.
Lease Purchase
Lease Purchase
- This is in effect hire purchase with a “balloon”, designed specifically for businesses which wish to own the vehicle at the end of the agreement.
- The customer hires the vehicle for the length of the agreement and takes ownership of the vehicle once the contract has concluded.
- The payment profile of lease purchase typically involves a deposit, regular monthly payments and a final balloon payment, representing the vehicle’s estimated Residual Value (RV) at the end of the agreement, calculated in the same way as the optional final payment under a personal contract purchase contract (PCP).
- Unlike PCP, the customer cannot hand the vehicle back at the end of the agreement, so must pay the final balloon payment. If the vehicle is worth more than this payment, the surplus could be used as a deposit on a replacement vehicle. But if the payment is more than the vehicle’s actual value, the customer must make up the shortfall or refinance it.
Finance Lease
Finance Lease
- Finance Lease is available for commercial vehicles to business customers who are VAT registered.
- To reduce monthly payments, the agreement can be structured so that a “balloon” is paid at the end of the minimum hire period.
- At the end of the minimum hire period, the agreement will continue for a further ten years unless notice is given to end it, in which case, we may agree that the customer can sell the vehicle to a third party.
- If the vehicle is sold, and the proceeds exceed any amount owed under the agreements, we’ll pay the customer most of the excess by way of a rebate of hire payments. If the proceeds are less than any amount still owed, the customer must pay the difference.
Our benefits
Flexible solutions
- We offer different financing products to suit your needs.
- We are a lender who offers finance options to help you get the finance you need.
Getting you answers at speed
- Through our cutting-edge technology, you can expect a finance decision quickly
- Taking the secured dealer finance route is also likely to be quicker and less involved than an application to a high-street lender for an unsecured loan
Personalised service
- Our team of Business Development Managers will also be on hand to help and advise.
- Contact us online, or by phone – whichever works best for you.
- We also pride ourselves on our accessibility standards to ensure we can serve all customers to the highest standard. For example, we can help with translation if English is not your first language or arrange for documents to be made available in audio form.
Financial support
We understand there may be times when unforeseen events affect how you’re able to manage your finance agreement. You should talk to our Collections team on 0330 123 0332 (option 2) or collections@mivf.co.uk, if you’re concerned about missing a payment as we’ve a number of options available to help you, depending on your individual circumstances.
You can also make a “forbearance” request to us to reduce or stop your payments for a period. You can use this form to do this if your agreement was not taken out for business purposes or this one if you are a business customer.
There are also some useful websites you can visit for free and impartial advice if you’re worried about your financial situation. They give a range of information, from practical advice about managing your money to budget planning:
www.moneyhelper.org.uk/en
www.stepchange.org
www.citizensadvice.org.uk/
www.nationaldebtline.org
Please ensure that you are able to afford the monthly payments and that the time period you anticipate keeping the vehicle is reflected in your finance product and payment period choices. For guidance on affordability click here.
What should I do if I am worried about my financial situation?
Supporting our dealers and brokers
As well as working to make vehicle financing a pleasure for customers, we work continuously to help our dealer and broker partners. From training to technology, from accessible underwriting experts to locally based field support expertise, Team Mann Island is committed to helping its partners to deliver good customer outcomes.
“We like their approach, people and technology, it means we have less duplication of effort to get the finance sorted; that is always going to be a good thing.”
Philip Mair and Stuart Campbell – Autocentre Inverurie Limited
Creating good customer outcomes
Find out more about our commitment to delivering good outcomes for our customers and to lending responsibly.
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