New Cars - Finance

Finance offer

The finance plan shown above is subject to status through Finance Mitsubishi. A credit facility fee of £215 is included wiothin the payments and an option to purchase fee of £10 is included in the Final Payment. Mitsubishi Alternatives 'Lease Purchase Plan' figures are based upon an annual milage of 12,000. Full written quotations available upon request from your Mitsubishi dealer. Payment Protection is available at an extra cost. Indemnities may be required. Finance Mitsubishi is part of Lloyds TSB Asset Finance Division. Offer is only applicable ni the UK (excludes Channel Isles & I.O.M.) and may be withdrawn at any time.

Personal Finance

There are two main ways to finance your car:

• Hire Purchase
• PCP – Personal Contract Purchase

How Hire Purchase Works

• After paying the initial deposit, the balance is repaid by fixed, equal monthly payments
• The Hire Purchase agreement can run for up to 5 years
• Once all the payments are made, you become the owner of the vehicle
• You can change your vehicle at any point during the agreement. A settlement figure is agreed, saving some of the interest charges

The Benefits of Hire Purchase

• You don’t have to use bank borrowing to fund the vehicle purchase
• The fixed repayment period helps you plan your finances

How Personal Contract Purchase Works

• At the start of the contract, a 'balloon payment' or Guaranteed Future Value (GFV) is agreed, which is paid at the end of the contract. This amount and the deposit you choose to pay are set against the vehicle price and your monthly repayments are based on the balance, plus interest.
• Affordable monthly payments which are often lower than those from a traditional finance plan
  
  At the end of the agreement, you can:
• Return the vehicle to Humming Bird Motors and choose a new vehicle using any excess value over the GFV towards your deposit on your next Humming Bird Mitsubishi or Kia vehicle
• Pay the GFV and take ownership of your vehicle
• Return the vehicle with nothing more to pay (provided that you have made all monthly payments, the vehicle being in good condition and has not exceeded the agreed mileage)

The Benefits of Personal Contract Purchase

• Peace of mind from knowing that you have the benefit of a Guaranteed Future Value
• Lump sum 'Balloon Payment' can reduce your monthly payments making your chosen vehicle more affordable
• Variable repayment and deposit terms to help you budget your finances

Business Finance

Whether you are a sole trader, limited company or a partnership, we have a range of finance solutions to meet your business needs.

There are three main ways to finance your vehicle:

• Lease Purchase
• Contract Hire (with maintenance)
• Contract Hire (without maintenance)

How Lease Purchase Works

• Lease purchase is similar to Hire Purchase, but is more flexible to meet your business needs changing needs
• Your initial deposit normally forms 'monthly payments in advance' and a final lump sum ‘balloon’ payment is usually included. The ‘balloon’ payment is a flexible payment that reduces the amount of the monthly repayments.
• After making the ‘balloon’ payment, you can either keep the vehicle or part exchange it - putting any surplus equity towards a deposit for your next vehicle

The Benefits of Lease Purchase

• You don’t have to use bank borrowing to fund your vehicle purchase
• A flexible final ‘balloon’ payment, together with reduced monthly payments, tailored to suit your financial needs

How Contract Hire with Maintenance Works

Fixed Rental Payments
Accurate vehicle and financial planning enables you to spread the cost of your vehicles, thereby improving cashflow for your business.

Optional Maintenance
Our ability to negotiate preferential terms extends to service and maintenance requirements of vehicles. We pass this saving on to you, making our fully maintained contracts particularly good value for money.

Accounting
A Humming Bird Motors Contract Hire transaction is classed as an 'operating lease' for accounting and tax purposes. Vehicles financed in this way do not appear on your balance sheet, thereby improving key ratios.

Tax & VAT
The following may be integrated into Humming Bird Motors Contract Hire in a manner to suit your exact requirements:

• Tax aspects - Operating Lease rentals are an allowable expense for tax purposes subject to a proportional disallowance for expensive cars
• VAT - VAT will be chargeable on rentals and will be fully recoverable where there is no private usage of the vehicle. Where there is any private usage only 50% of the VAT on the finance element will be recoverable, but VAT on the remaining service elements is normally 100% recoverable. If the vehicle is a 'commercial vehicle', all VAT is normally recoverable irrespective of private use.

How Contract Hire without Maintenance Works

Fixed Rental Payments
Accurate vehicle and financial planning enables you to spread the cost of your vehicles, improving cashflow for your business. You will be responsible for all service and repair costs which must be carried out to the manufacturer’s recommended intervals.

Financial Aspects

• A Contract Hire Agreement is classed as an 'operating lease' for accounting and tax purposes. Vehicles financed in this way do not appear on your balance sheet, thereby improving key ratios.
• Tax aspects - Operating Lease rentals are an allowable expense for tax purposes subject to a proportional disallowance for expensive cars.
• VAT - VAT will be chargeable on rentals and will be fully recoverable where there is no private usage of the vehicle. Where there is any private usage only 50% of the VAT on the finance element will be recoverable but VAT on the remaining service elements is normally 100% recoverable. If the vehicle is a 'commercial vehicle', all VAT is normally recoverable irrespective of private use.

GAP Insurance

Current statistics indicate the risk of your vehicle being stolen or written off is now greater than ever before. Around 375,000* vehicles are stolen every year, which is equivalent to 1 every 85 seconds. (*source - Car Theft Index 2000)

If you are unfortunate and your vehicle is stolen or written off as the result of an accident, your insurance company will generally offer you a total loss payment based on the market value of your vehicle at that time. This value could be significantly less than either the cash price of the vehicle or the outstanding balance of the current finance agreement.

GAP Insurance to help protect your investment by covering the difference between the amount paid by your motor insurer and either the outstanding balance of your finance agreement or the cash purchase price paid when your vehicle is stolen or written off.

Want to know how much you can afford to spend on a new Kia or Mitsubishi? Check out our handy Purchase Price and Monthly Payments finance calculators.