Car Finance FAQ'S

How does Prestige or Luxury car finance differ from leasing?

At Niche VF, we specialise in helping our clients purchase the vehicles of their dreams by securing money from an established panel of lenders. Some aspects between leasing and financing can seem very similar – but it’s important to remember which one is which while you search for the best solution for your individual needs.

Traditional car leasing works in the same way as renting a car for a long-term period of time. During the lease agreement, predetermined amounts are paid back to the lender on a monthly basis – similarly to a number of car finance packages – but in this case, the vehicle is returned to the finance provider at the end of the lease period. Because of its ‘rental’ nature, you cannot make any modifications or cosmetic changes to the car outside of repairs as you may be charged.

With our finance packages, at the end of the agreement you own the vehicle, unless you choose to return it to the lender or part exchange it ahead of your next exciting investment. In the case of a Hire Purchase agreement, for example, it is imperative that clients remember that until the final payment is cleared the car is not theirs – as it still belongs to the financing company. 

We work hard to secure the best deals for you as quickly as possible, combing through offers and negotiating rests to make sure we secure the most effective financing solution for your needs. Often it takes a few days for us to arrange the release of money and do a complete check, sorting paperwork and details on behalf of our clients – creating a bespoke package that goes above and beyond.  

What happens at the end of the agreement term?

Depending on the type of prestige car finance you take out with us, you will have a selection of options available to you. Once your agreement period is up, you can choose to part ways with your prestige vehicle and return it to the lender, or opt to pay off the outstanding balance and get the keys – and ownership – to your car. If you agreed to take out a Hire Purchase Agreement with a balloon, for example, you can also choose to refinance the balloon amount for another term or simply sell the car to pay off the figure yourself, which allows you to keep whatever equity remains. 

Whatever your choice, our concierge team is on hand to assist you, whether you are at the beginning, middle or end of your finance journey with us.

What happens to my credit?

Before we submit to our panel of esteemed lenders, our credit analyst team will always do a quotation search – this is standard practice for our industry. This is a figure that you – and only you – will be able to view on your credit file. At this initial quotation stage, a full search on your credit rating is not required; however, when we move to the formal proposal, a complete check will be requested to determine any aspects of credit worthiness.

If you are concerned about a ‘bad credit score’ or worried about credit acceptance when it comes to prestige car finance, our team is available to help. With over 30 years’ experience in brokering car finance deals for a wide range of clients, we are dab hands at examining each proposal on an individual basis. Our personal service allows us to guide you where possible, giving customers access to the best options and deals available when it comes to prestige finance solutions. 

 

As always, one of the main things any reputable lender will examine is affordability. In addition to any credit taken into consideration, another factor a lender will need to be sure of is that the borrower will be able to handle, service and return the debt in addition to any further interest that may be accrued over this period. Other aspects, such as your income and any outstanding finance agreements that are in effect, will also impact the lender’s decision – which is why all of our clients have to be responsible when it comes to taking out finance. You must be sure that you can afford any car you agree to broker with us.

 

At Niche VF, we will always give you the best advice available. Should you decide that obtaining finance directly from a dealer suits you better, we will always support your decision and ensure that you are clear on what that option entails. That said, from all of our years spent sourcing competitive rates, our deals and trusted panel of funders are truly hard to beat. Those that come to us rarely find a better option than the range of flexible financial packages we provide. 

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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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.