Discover the different types of financing Meridian Finance can offer. Finance options vary by the type of vehicle you require, some vehicles can be financed through different solutions. This is how we do it.
This is the most basic form of car finance. You pay a deposit on your chosen vehicle to the dealer and we pay the remainder of the purchase price on your behalf. You’ll then pay this money back with interest on a fixed term, which can be anywhere between 24 and 60 months. At the end of the agreement, once you have made all your payments, title to the vehicle passes to you.
Used Range Rover Sport with a purchase price of £20,000.0
Your preferred deposit of £4,000.00
We’ll finance the remaining £16,000.00
Repayable by 48 monthly payments at £400.00
Most finance companies will have document fees payable with their agreements – typically around £150 with the first and last payments. These are taken into account when calculating your APR.
Why choose this finance agreement?
Choose Hire Purchase if you want to own the vehicle at the end of the term and can easily afford the monthly payments.
What can I finance on hire purchase?
Pretty much any car, van, bike or minibus. We can offer hire purchase agreements for vehicles of all ages.
Who owns the car?
The finance company will be the legal owners of the car until all payments are made, but your name will appear on the vehicle registration document (V5) as the registered keeper.
Can I pay more per month to reduce my balance?
Yes you can – a conditional sale hire purchase agreement is very flexible. You can if you wish pay additional lump sums at any time and reduce your monthly payments, or shorten the term of the agreement. The total interest payable is recalculated and reduced if you do pay lump sums.
I want to change cars, but I haven’t finished paying for it yet.
No problem, you can settle your finance agreement at any time and benefit from a regulated settlement figure which will take into account a rebate of interest charges not payable. If you’re part-exchanging the car then we can settle the finance for you as part of a new finance agreement on your next car.
With contract hire, you’re simply hiring a car for a set period of time. We will take into account what mileage you expect to cover, whether you want maintenance and servicing included and how long you’d like to keep the car. At the end of the agreement you’ll just hand the vehicle back to the finance company.
New Range Rover Evoque 2.2 ED4 5dr Manual
3 year term with 10,000 miles per year, full maintenance included.
Initial rental: £1,350 + VAT followed by 35 rentals of £450 + VAT
Why choose this finance agreement?
Choose Contract Hire if you want a new car every few years and don’t want the hassle of selling your car, or would like all the maintenance and servicing included in one monthly rental. It’s available to businesses and individuals, but please note that VAT is payable on the monthly rentals, which you can’t reclaim if you’re not VAT registered.
What can I finance on contract hire?
Contract hire is restricted to new cars and vans only.
Who owns the car?
The contract hire company own the vehicle and you are the ‘lessee’ of the car or van.
What’s covered in a contract hire agreement?
Road fund licences are included for the full term of the agreement. You’ll benefit from the standard warranty and breakdown cover that you would receive on any new car of course. A full maintenance agreement is very comprehensive and covers the cost of all maintenance and servicing, including replacements tyres when they’re worn out, batteries, exhausts and anything else needed on the car.
What’s not included?
You’ll need to pay for your own comprehensive insurance. Replacement windscreens are also not covered under the maintenance contract – these are usually covered under your insurance policy, check with your provider. And of course, you’ll need to pay for your own fuel!
I want to change cars, but I haven’t finished my agreement yet..
You can change vehicles early under a contract hire agreement, but it’s not the cheapest option – your settlement figure is usually around 50% of the remaining rentals, just to hand the vehicle back to them.
I’m at the end of my contract, what are my options?
Typically, you’ll just hand the vehicle back to the finance company and start something else. However, some of the companies will allow you to extend your current contract for a further term if you want, and some will provide purchase prices if you would like to buy the car.
I’m covering more mileage than I anticipated.
No problem – the contract hire companies are very flexible and can adjust your annual mileage during the agreement so you won’t end up with a bill for excess mileage. Conversely, if you find you’re covering less mileage than anticipated, we can lower your monthly payments so you’ll benefit from a lower monthly rental.
I need to return the vehicle but its’ condition isn’t perfect. What happens?
This happens very often with vehicles returned to the contract hire companies and all are very fair when it comes to end of contract damage. They’ll assess the damage and raise a bill for the cost or repair. So you have a couple of choices – you can arrange for any damage to be repaired with your local repair centre before it’s returned, or you can return the car in its’ damaged state and pay the bill when it arrives.