Forces Finance
Your finance options explained in simple terms
Finance Explained
Griffin Tax Free Limited is authorised and regulated by the Financial Conduct Authority (687396). We act as a credit broker not a lender. We can introduce you to a limited number of lenders who may be able to offer you finance facilities for the purchase of a new or used car. We will only introduce you to these lenders.
A lot of people who buy a new car choose to finance it. We work with many lenders to offer special military rates and different types of finance to suit you, including Close Brothers Military Services, as well as a number of manufacturers own finance divisions. So even if you have been declined elsewhere, we still may be able to help you.
The main finance options we provide to our customers are Hire Purchase (HP) and Personal Contract Purchase (PCP), but you can also take advantage of Personal Contract Hire/Leasing (PCH or PCL). We’ve put together a short guide below to show the different types of finance and how each will affect you when it comes to the end of the loan period.
Hire Purchase (HP)
HP finance is a loan fixed against your car. You pay an initial deposit followed by pre-agreed monthly repayments. Until you have made all payments on the loan, the finance company owns the car and will normally register their interest on a system called HPi or Experian.
You however are the registered keeper of the car. Once you have made all the payments, the car is yours.
Hire Purchase (HP)
- Flexible terms, from 12-60 months
- Varying deposits
- Fixed interest rates
- No mileage limitations
- You own the car at the end of the loan
Personal Loan
Similar to HP, but not fixed to your car. You pay an initial deposit followed by pre-agreed monthly repayments. The car is completely yours from day one. This type of loan is normally use for tax free sales to comply with BFG & HMRC regulations
Personal Loan
- Flexible terms, from 12-60 months
- Varying deposits
- Fixed interest rates
- No mileage limitations
- You own the car from day one
Personal Contract Purchase (PCP)
With PCP finance you pay a fixed monthly fee with the option, but not obligation, to buy the car at the end of the agreement for a pre-arranged amount, called the guaranteed minimum future value, (GFV, or final balloon payment).
At the end of the agreement you can either:
- Buy the car for the guaranteed future value (the balloon payment) and own it outright
- Trade the car in for a new one, using balance from the guaranteed future value as part of the down payment
- Give the car back and walk away
Personal Contract Purchase (PCP)
- Normally lower monthly payments than straight forward HP because of the final balloon payment
- Flexible terms, including an agreed annual mileage and deposit amount, ( a higher mileage however gives a lower GFV and may incur penalties if your mileage is exceeded)
- Choice of options at the end
Personal Contract Hire (PCH) / Leasing (PCL)
With PCH or PCL finance you literally hire or lease the car for the term of your agreement. This means you will never actually own the car, even at the end of the term. Unlike PCH there is no option to buy the car at the end.
Personal Contract Hire (PCH) / Leasing (PCL)
- Fixed cost motoring
- No depreciation risk
However
We need however to let you know, that as you are effectively only hiring or leasing the car on a fixed term, if you are posted or drafted abroad at any point you will still be liable to pay the whole amount. You will also not be able to take your car out of the country. These two points will leave you paying for a car you cannot use outside the UK.
It is therefore very important that you remember this before signing up to a PCH or PCL. This is the main reason we, as a company, do not recommend a PCH or PCL for our serving military customer.
For more details, or to apply for finance please complete the form below. A member of our sales staff will then contact you with an answer shortly. There’s no commitment, and you’ll know what amount of loan you can have to buy your new or used car. Forces Finance made Simple!
Finance Application - Serve and Protect
USE OF YOUR DATA
You have the right to know how we will use your personal information. It is important that you read this notice before sending this application form.
In considering your application we will search your record at credit reference agencies. They will add to your record details of the search and your application and this will be seen by other organisations that make searches. Information held about you by the credit reference agencies may already be linked to records relating to one or more of your partners. For the purposes of this application you may be treated as financially linked to and your application will be assessed with reference to any “associated” records.
If you are a joint applicant or if you have told us of some other financial association with another person, you must be sure that you are entitled to:
1) disclose information about your joint applicant and anyone referred to by you;
2) authorise us to search, link or record information at the credit reference agencies about you and anyone referred by you.
An “association” between joint applicants and between you and anyone you tell us is your financial partner will be created at the credit reference agencies. This will link your financial records, each of which will be taken into account in all future applications by either or both of you. This will continue until one of you successfully files a disassociation at the credit reference agencies.
It is important that you give us accurate information. We will check your details with a fraud prevention agency and, if you give us false or inaccurate information and we suspect fraud, we will record this.
Your record will be shared with other organisations and used by them to:
1) help make decisions about credit for you and member of your household;
2) trace debtors, recover debt, prevent money laundering and fraud.
We and the credit reference agencies and the fraud prevention agency will also use your record for statistical analysis about credit and insurance and fraud.
Fraud prevention agency records will also be shared with other organisations to help make decisions on motor, household, credit, life and other insurance proposals and insurance claims, for you and members of your household.
Where you have applied for or taken out Credit Protection Insurance and/or GAP Protection Insurance we will require to process personal information relating to your physical or mental health or condition, such information will be transferred to the Insurer who administers and provides the insurance. By applying for Credit Protection Insurance or GAP Protection Insurance you consent to us and the Insurer using the personal information supplied with your application for the purposes of administering the insurance policy, including underwriting and claims handling.
PLEASE WRITE TO US IF YOU WANT TO HAVE THE DETAILS OF THOSE CREDIT REFERENCE AND FRAUD PREVENTION AGENCIES FROM WHOM WE OBTAIN AND TO WHOM WE PASS INFORMATION ABOUT YOU OR IF YOU WANT DETAILS OF THE CREDIT PROTECTION OR GAP PROTECTION INSURER. YOU HAVE A LEGAL RIGHT TO THESE DETAILS.
We may transfer your personal information to a person or company outside the European Economic Area. We will not do so unless that person or company agrees to protect your personal information and only use it in accordance with our instructions. We are responsible for ensuring that your personal information will continue to be adequately protected during and as a consequence of any such transfer.
YOU HAVE A RIGHT TO RECEIVE A COPY OF THE INFORMATION WE HOLD ABOUT YOU IF YOU APPLY IN WRITING. A FEE WILL BE PAYABLE.
