NICHE VEHICLE FUNDING

Part of the Niche Automotive Group

T: 01756 699411   

E: info@nicheautomotive.com

Embsay Mills Business Centre

Skipton

BD23 6QR.

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BALANCED PAYMENTS CAR FINANCE.

Fixed monthly payments with variable interest rates

Finance new or used cars with a balanced payment plan to benefit from flexible rates.

BP Finance?
What is a Balanced Payment Plan?

A Balanced Payment Plan offers a fixed monthly payment. However, unlike a Hire Purchase car finance agreement, where the interest rate is fixed, Balanced Payments offer a variable rate which tracks the changes in the Finance House Base Rate, LIBOR or Bank of England Base Rate, depending on what is specified in the agreement.

 

As the relevant rate goes up or down over the period of the contract, so does the amount of interest you pay.

Why choose Balanced Payments?

Rates are competitive, and Balanced Payments plans tend to be popular with sophisticated borrowers and investors with a good understanding of finance.

How does Balanced Payment car finance work?

You pay an initial deposit and then the balance in fixed monthly instalments over an agreed term (24-60 months).

 

At the end of the term any variation in interest rates is reconciled and will be settled as either a credit to you, or a charge.

 

Other options available with a Balanced Payment Plan include a final ‘balloon’ payment which has the benefit of reducing your monthly payments by deferring an agreed element of capital until the end (traditionally linked with the depreciation of the vehicle).

What are the benefits of Balanced Payments?

  • Flexible – reducing interest penalty options for early settlement

  • Low deposit – doesn’t tie up cash reserves

  • Fixed monthly payment – perfect for budgeting

  • Tax benefits – Tax allowances for business users

  • Potential savings – save if interest rates fall

  • VAT free – no VAT on payments

What should I consider before using Balanced Payments?

  • No returns - You do not have the option to return the vehicle at the end of the agreement

  • Any increase in interest rates will mean you pay more under the agreement

  • The facility doesn’t offer the protection of the Consumer Credit Act

  • The minimum advance for an individual is £25,000, based on a business user declaration but any level is available for limited companies.

Commonly asked questions

Balanced payment details

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Require further information or a quotation for a car funding option? Looking for a specific Make or Model of car to be sourced?

We can introduce you to a limited number of lenders and their finance products. We are not an independent financial advisor; we will provide details of products available, but no advice or recommendation will be made. You must decide whether the finance product is right for you. We do not charge you a fee for our services. Whichever lender we introduce you to, we will typically receive commission from them (either a fixed fee or a fixed percentage of the amount you borrow). The commission arrangements we have in place vary, depending on how you are introduced to us and with which lender we are able to place you with. When you are introduced to us by a motor retailer, we may be paid a flat fee, regardless of the interest rate you pay, finance product, length of agreement, or amount of finance. We may also be paid a fixed rate of commission, calculated as a percentage of the amount of finance. We will always introduce you to the most suitable finance lender offering you the most appropriate finance product for your needs, and at the best interest rate possible (which is determined by the finance lender) based on the commission we are paid and by your credit profile. The amount of commission we receive and pay, and your credit profile, will impact the amounts you pay under your credit agreement. In both cases, we will pass a proportion of the commission paid to us to the motor retailer that introduced you to us. We may also be paid, and pay the motor retailer, higher commission depending on the type and age of vehicle or based on the finance product you are provided with. In these cases, commission levels vary based on the levels of work required to be undertaken by us and the motor retailer. Whilst we may receive higher levels of commission based on the finance product you are provided with, this is always based on the level of work required in relation to the particular product and we will not seek to secure finance products that are not suitable for your needs.

We are a credit broker and not a lender. Niche Vehicle Funding is a trading style of Niche Automotive. Our VAT registration number is 847687858, Niche Automotive is authorised and regulated by the Financial Conduct Authority under firm reference number 650172. If you would like to know how we handle complaints, please ask for a copy of our complaints handling procedure, or click here. You can also find information about referring a complaint to the Financial Ombudsman Service (FOS) at www.financial-ombudsman.org.uk.