We use a Black Horse Finance, a division of Lloyds TSB. We find their rates more competitive than Vauxhall Finance. Most of our competitors use Vauxhall Finance because they borrow money from them, using the vehicle stock as collateral, thereby tying them in for the Customer Loan Business. At Northern Motors we own all our used cars outright and can therefore place our Loan Business with the best provider for the customer.

Hire Purchase

We believe this is the best way to buy a car. The loan is secured on the vehicle not the individual, so your house is not at risk.

We are offering loans, as long as the amount borrowed is over £3000 and 3 years. TheTypical APR is achievable but dependent on your status.

Personal Loans

There are many Direct Lenders tempting you with fantastic APR Percentages. But there are serious pitfalls:

• The advertised rate is subject to status, they only offer that rate if your credit rating is exceptionally high. They look for high earning home owners with families and reasonably low outgoings, with no history of late payments on other loans or credit cards. Fall short of this criteria you will probably be offered a higher rate than that advertised.

• Defaulting on this loan will ultimately end in bankruptcy, and you losing your house and all your worldly possessions.

• We cannot deliver the car until the funds are cleared in our account. The loan company has to get you accepted, have you sign the paperwork, approve the paperwork, raise a cheque which you have to bank, clear and raise another payment to us which we have to clear. Best ways, this will take two weeks, at worst six weeks. Whereas we can sometimes deliver the car same day, if you take our finance.

• Often low rate personal loans are only available if you take out their Payment Protection Policy.

• Where these loans will be of an advantage is if you owe more for a car than the car is worth. This is known as ‘negative equity’ and can be overcome by using a personal loan, unfortunately the risk for the finance house is greater and therefore the rate is slightly higher at 12.9% APR

Choices

This is another form of finance where you only repay the equity in the car, leaving a balloon payment at the end of the finance agreement, which is predicted to be covered by the value of the car at that time. The result is a lower monthly outgoings, but looking at the bigger picture, this is not a cheap way of buying a motor car. If the low monthly payment fits your circumstances then this is the scheme is definitely for you, but consider longer periods on Hire Purchase, such as 5 years, first as the overall repayment will be better.

GAP - Guaranteed Asset Protection

For £349 we can provide you with an insurance policy that will pay out when your car is a total loss (theft or accident). It will pay the difference between the insurance settlement or Glass’ Guide valuation, and the original invoice price (excludes Road Fund Licence and Dealer Fit Accessories). The Policy lasts for three years and is operated by Abraxas Ltd. With a car stolen in the UK every two minutes and nearly half a million vehicles written off annually can you afford to take that risk? Please Take the link to see the Key Facts for this product.

Payment Protection Policy

Life, Accident and Sickness and Redundancy can all be covered. There are different levels to suit your circumstances, for example Life, Accident and Sickness for the self employed. They will pay your premiums after a specific period of incapacity, but as you will expect there are many terms and conditions so please ask for details from your Sales Executive.

Sureguard Warranties

This is an Extension of your New Vehicle Warranty. It gives you breakdown assistance in years two and three after the vehicles registration and enhances the warranty to cover items such as Shock Absorbers for example. You can also extend the cover for the fourth year. The warranty is manufacturer backed. Please take the link for more details.

All of the above are subject to terms, conditions, status and availability. Please ask your Sales Executive for details.