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Finance & Warranty

Finance

You’ve found your dream car, now to look at options to purchase it.

We, Jim Reid Vehicle Sales Limited are a credit broker, not a lender. 11.9% Representative APR

Ways to finance your purchase

There are many options when it comes to financing your next car, but there also appears to be quite a lot of confusion in the press and among consumers about car finance…

This article will explain the main differences between the three most popular types of finance, and get to the bottom of the argument once and for all…which product is best?

Happy to Proceed? Apply for your Finance NOW

Our Rate’s of Finance are 11.9% Representative APR for Car’s & 9.9% Representative APR for Commercial Vehicles. * We are a credit broker and not a lender.

Which product is best?

So, that leads on to which is the best product? All finance products have their place.

If ownership is the number one priority, and you don’t want to pay a lump sum at the end of the agreement then HP could be the product for you.

Unsure if you want to own and want the flexibility to decide later? Then take out a PCP agreement.

Want to drive a shiny new car every two or three years without the worry of depreciation? Then PCH maybe the best way forward.

This article is not designed to sway you one way or another. It’s here to hopefully provide a little more clarity on some of the options available to you. There are other finance options available to consumers of new and used vehicles (and you can always pay cash) but the important thing is that you as a consumer are aware of all costs, interest rates and options available to you before entering into any form of financial arrangement.

Hire Purchase (HP)

Hire Purchase (HP)

What is Hire Purchase?

First off we have Hire Purchase (HP) – a finance product that has been around, it seems, since the dawn of time. It’s used everywhere in nearly all retail environments and is very simple to understand.

You pay a deposit and make your monthly payment until the car becomes yours, 100%. It’s best for customers who definitely want to own the car at the end of the agreement.

Advantages of HP

  • The cost of vehicle purchase is spread over a fixed period, normally between 1 and 5 years, rather than a large upfront payment
  • You own the vehicle once the final installment has been made

Disadvantages of HP

  • Potentially higher monthly payments in comparison to other finance options.
Personal Contract Purchase (PCP)

Personal Contract Purchase (PCP)

What is Personal Contract Purchase?

Next, there’s PCP. The press like to make out that this is the new kid on the block but in reality, it’s been around since Ford launched its ‘options’ programme in the early 90s. Many love to refer to this as a lease but it’s not, it’s designed as a route to ownership and provides flexibility for people who are unsure whether they want to own the vehicle or not at the end of the agreement.

With PCP you pay a deposit, make your monthly payments and at the end of the contracted monthly payments you have three options:

01. Make the final payment (normally referred to as the balloon) and own the car outright.
02. Use any equity toward the deposit on your next car. The equity will be the difference between the actual value of the car and the Guaranteed Minimum Future Value (GMFV). The GMFV is set at the start of the contract.
03. Hand the car back and walk away.

Advantages of PCP

  • The flexibility of car ownership at the end of the agreement.
  • The potential of the car being in equity at the end of the contract, allowing you to sell the vehicle, settle the finance and keep the difference.

Disadvantages of PCP

  • The balloon payment can be substantial, making it not viable for you to pay in a single payment.
Personal Contract Hire (PCH)

Personal Contract Hire (PCH)

Last, but by no means least, PCH. Personal contract hire applies exclusively to private individuals. When most people refer to the term ‘car-leasing’ they are actually talking about personal contract hire, in essence, it’s a long term rental.

With a PCH agreement, you take control of a car for a fixed period. Though the car is in your possession, it is not actually yours to own. Instead, you make fixed monthly payments to a leasing company for the duration of the contract. When the contract expires you simply return the car to the leasing company and, if you want to, take out a new lease. As a result, you never have to worry about resale value of the car. You never own it, so you can simply return it and walk away.

Advantages of PCH

  • It’s cost effective. Monthly payments are generally lower than a PCP or HP agreement
  • There are no depreciation concerns. You don’t own the car so you don’t have to worry about the resale value
  • Fixed monthly payments. There are no concerns around VED (road tax) or interest rate changes

Disadvantages of PCH

  • No ownership option – you can never own the car outright
  • If circumstance change and you have to change vehicle it can be costly to get yourself out the contract.

Having now found your perfect car the next stage is how you pay for it?

Firstly we always require a deposit of £99* for any car that we have in stock, this fully refundable deposit allows us to remove the vehicle you have committed from display and mark as sold for a period of 24 hours, thus ensuring no one else can purchase the vehicle in front of you. Securing your decision with a deposit gives you more time to decide how you are going to fund the balance to pay and organise full payment and a suitable collection date.

NB. If we are ordering a specific vehicle on your behalf which is not in stock, then we may ask for a larger deposit which maybe non-refundable (please ask for clarification).

*even if you purchase online your online deposit is only £99 which is fully refundable.

Due to the increase in fees on Credit Card, Debit Card & Apple Pay transactions being charged by the banks , we are no longer able to absorb these charges when you pay by card, therefore we only accept the following payment methods:

Type Method Information
Deposit £99

Credit, Debit card or

Apple Pay

Debit preferred
Full Balance Bank transfer Payment to be made in full before collection
  Cheque / Bankers draft Allowing 7 working days to clear before collection.
  Cash We now only accept a maximum of £1000 of payment by cash
  Finance Company Cleared Funds from a Finance Company are required before the release of the vehicle.

We can help organise financing of your purchase through our trusted finance partners– Northridge Finance, MotoNovo Finance or Evolution Funding who are all on our panel of lenders.

We have chosen to work hand in hand with Northridge Finance , MotoNovo Finance and Evolution Fundings to provide you with the largest choice and flexibility of finance options available in today’s complex finance market. Our ever-increasing finance volume has allowed us to negotiate a package that means we can offer you some of the best rates on the market at the same time as offering a quick, easy and hassle-free car buying experience.

Our Rate’s of Finance are 11.9% Representative APR for Car’s & 9.9% Representative APR for Commercial Vehicles. *

On some occasions we find that our Customer’s will not always qualify for the selected rates above on these occasions we will always chat through your option’s before seeking alternative funding for you.

Our finance packages

With so much choice in the finance market, we like to make it easy for you to make a decision by presenting a tailor-made finance package that suits you.

Our finance packages include, but are not restricted to, the following:

  • Hire Purchase 12 months – 60 months.
  • Hire Purchase with Balloon Payment
  • Personal Loans / Fixed Sum Loan Agreements up to 48 months.
  • Personal Contract Plans (PCP) up to 48 months.
  • Leasing & Contract Hire/PCH

As always, finance is subject to terms and conditions and subject to acceptance* of your finance proposal. Please get in contact with our experienced sales team to discuss your request.

*Where there is a decline of your finance proposal, we will (with your permission) send your proposal to a lender we feel that will best suit your circumstances and credit rating. They will attempt to match your finance requirements with a suitable lender. This may result in a higher rate of finance , however we will always chat through your options and give free impartial advice.

General Terms and Conditions

Please note you will not own the vehicle outright until all payments are made.

If you default on your finance payments, then the vehicle may be repossessed by the finance provider.

You must be 18 years or older to apply for finance.

Finance is not guaranteed, and any finance application is subject to a credit check and individual circumstances.

If you require any further information please do not hesitate to contact us.

The finance provider will have their own Terms and Conditions, please contact them directly for further information.

Finance Complaints

If you have a complaint about how we have handled your finance proposal or have a complaint about any finance we have sold you please contact:

Jim Reid Vehicle Sales LTD
By Post: Jim Reid Vehicle Sales LTD, Craigearn Business Park Morrison Way Kintore Inverurie AB51 0TH
By Telephone: 01467 634000
By email: sales@jimreidvehiclesales.co.uk

If we cannot resolve your complaint within 8 weeks, you may refer your dispute to the Financial Ombudsman Service. This service is free to use. Their consumer helpline is available on 0300 123 9123 or you can visit their website at www.financial-ombudsman.org.uk.

Dispute Resolution and Complaints

We work hard to ensure that the services we offer are fair and that our communication to our customers is clear and not misleading. However, if you are unhappy with our service and you wish to register a complaint, please contact us:

To help us resolve your problem, you should provide the following information:

  • Your full name and contact information
  • Full details of your complaint
  • Your agreement details
  • Details of what you would like us to do to put things right
  • Photocopies of any relevant paperwork

We are a credit broker, not a lender.

Initial Disclosure Document

Why finance
through a dealership?

What is
Conditional Sale?

What is
Hire Purchase?

What is Personal
Contract Purchase?

What is Personal
Contract Hire?

What is
Lease Purchase?

Warranty

Peace of mind for the road ahead

We pride ourselves on the high-level preparation standards of our sales vehicles.

Despite this, we can never guarantee that you will not have any problems with your purchase. That’s why we have teamed up with A1 Approved Warranties to offer you the best cover available in the event of something going wrong with your purchase.

If your vehicle is still covered under the Manufacturer’s Warranty then this warranty will transferred to you. In the event where something goes wrong with your car…. eg. An engine management light illuminates then contact our Service Centre first. A Team member will ask some qualifying questions about the issue you are experiencing and where necessary will book in your vehicle with the Manufacturers Dealership under Warranty on your behalf. Where you have used us for servicing & maintenance for this car, we will organise you to drop off your car with us, we will supply a FREE loan car and we will delivered and collect the car from the Dealership who is repairing the car under warranty, saving you time, money and hassle.

If your vehicle is no longer covered under the Manufacturer’s Warranty when you buy it from us we will offer you the following A1 Approved Warranties depending on the age and mileage on the car when you buy it from us.

2 different levels of coverage are available depending on age and mileage at date of inception.

The Screen Price of our Cars always include at least 3 months parts & labour warranty giving you complete peace of mind, with the option to purchase an extended warranty* to give you up to 24 months cover.

Extend your A1 Approved Warranty NOW with our Special Drive Away Offer

*Please note this is only available and the point of purchase.

**Please Note that it is always very important to maintain the warranty coverage by keeping your vehicle regularly maintained and serviced by Jim Reid Vehicle Sales & Service or where not possible to do so, a reputable independent or franchise garage and records of this service must be kept. If you maintain, service & MOT your vehicle with Jim Reid Vehicle Sales & Service we will always ensure that you will be first in the queue for our FREE loan cars and we will bend over backwards to ensure we deliver on the promise to make your ownership hassle free by organising by collecting and delivering your car to the Manufacturers Franchise Dealer where required.

A1 Approved – Platinum Cover Warranty

A1 Approved – Platinum Cover Warranty

This cover is available for vehicles up to 5 years old and 50,000 miles at the time of purchase.

When something breaks on your car we want to be first to know.

We have teamed up with A1 Approved Warranties to ensure you get the best level of warranty coverage representing the best value for money.

No all parts are covered under our warranty however you may get a pleasant surprise what is.

What Happen's if I Experience an Issue with my Car that is still covered under Warranty?

The first thing to do is call our friendly and helpful Service Centre who will give you the best advice and book your car in for an inspection at your earliest convenience. Remember to let them know if your require a FREE loan car whilst you car is in or if you would prefer for us to collect from you home.

Once your car is booked in, we will inspect to find the fault and report back to you. Where the failed part is covered under your A1 Warranty Policy, we will contact A1 Approved Warranties to gain authority for the repair and advise you if there is anything for you to pay. We will then carry out the repair and contact you as soon as the car is repaired , cleaned and ready for collection.

We will claim the repair cost of the repair from A1 Warranties so you can sit back and relax and get on with the rest of your day, hassle free.

Commonly Asked Questions

Q. Can I use my own garage for repairs?

A. We would always recommend you come back to Jim Reid Vehicle Sales & Service first however the answer is...Yes You can, preferably not a main dealer and if you do not know a local independent garage try using The Good Garage Scheme on the internet or we can find one for you. You can use a main dealer if you wish as long as you are prepared to pay the difference in the charges compared to a local independent garage.

Q. Do I have to pay the garage myself and then claim back the costs from you?

A. No. We can pay the garage directly for the authorised sum with our debit card over the telephone before You collect Your car. If they do not accept card payments over the telephone We can pay them with an immediate bank transfer. All We ask is that the garage email or fax us their invoice first. No other warranty company offers this level of service.

Q. What happens if I need to make a claim?

A. In the event of a failure You must follow the claims procedure in the book.

Q. Does my warranty cover for worn out components?

A. No it does not. No warranty can cover for worn or wearing components on a used car. The warranty is not a reconditioning tool to replace things as they wear on Your car, rather it will cover for components that have actually physically broken or have a permanent electronic defect. Even a brand new car warranty will not pay for normal wear and tear.

Q. Do I need to get my vehicle serviced?

A. Yes you do only at the correct times / mileages in accordance with the manufacturer’s recommendations after You take delivery of the vehicle. We are not interested in the service history of the vehicle prior to You purchasing it. The service does not have to be completed by a main dealer unless You want to maintain a full dealer history, but please ensure that You retain the relevant receipts as proof.

Q. Does my warranty cover diagnostic charges?

A. The warranty does not cover plug in diagnostic charges as there is no set times for doing this. What might take one garage ten minutes to diagnose may take another two hours so these costs cannot be built into the warranty costs. We do however cover physical dismantling charges in the event of a valid claim subject to the warranty maximum claim limit.

Q. Will I have to pay anything?

A. When your claim is authorised this will be for a specific sum of money agreed with Your repairing garage. You may have to pay any warranty excess and / or for components

that are not covered under the warranty, plus any amount over and above the claim limit of Your warranty.

Please see the Platinum Cover Warranty Book PDF below for full explanation of coverage.

Download PDF

A1 Approved – Gold Cover Warranty

A1 Approved - Gold Cover Warranty

This cover is available for vehicles between 5 -10 years old and between 50,001 – 100,000 miles at the time of purchase.

When something breaks on your car we want to be first to know.

We have teamed up with A1 Approved Warranties to ensure you get the best level of warranty coverage representing the best value for money.

No all parts are covered under our warranty however you may get a pleasant surprise what is.

What Happen's if I Experience an Issue with my Car that is still covered under Warranty?

The first thing to do is call our friendly and helpful Service Centre who will give you the best advice and book your car in for an inspection at your earliest convenience. Remember to let them know if your require a FREE loan car whilst you car is in or if you would prefer for us to collect from you home.

Once your car is booked in, we will inspect to find the fault and report back to you. Where the failed part is covered under your A1 Warranty Policy, we will contact A1 Approved Warranties to gain authority for the repair and advise you if there is anything for you to pay. We will then carry out the repair and contact you as soon as the car is repaired , cleaned and ready for collection.

We will claim the repair cost of the repair from A1 Warranties so you can sit back and relax and get on with the rest of your day, hassle free.

Commonly Asked Questions

Q. Can I use my own garage for repairs?

A. We would always recommend you come back to Jim Reid Vehicle Sales & Service first however the answer is...Yes You can, preferably not a main dealer and if you do not know a local independent garage try using The Good Garage Scheme on the internet or we can find one for you. You can use a main dealer if you wish as long as you are prepared to pay the difference in the charges compared to a local independent garage.

Q. Do I have to pay the garage myself and then claim back the costs from you?

A. No. We can pay the garage directly for the authorised sum with our debit card over the telephone before You collect Your car. If they do not accept card payments over the telephone We can pay them with an immediate bank transfer. All We ask is that the garage email or fax us their invoice first. No other warranty company offers this level of service.

Q. What happens if I need to make a claim?

A. In the event of a failure You must follow the claims procedure in the book.

Q. Does my warranty cover for worn out components?

A. No it does not. No warranty can cover for worn or wearing components on a used car. The warranty is not a reconditioning tool to replace things as they wear on Your car, rather it will cover for components that have actually physically broken or have a permanent electronic defect. Even a brand new car warranty will not pay for normal wear and tear.

Q. Do I need to get my vehicle serviced?

A. Yes you do only at the correct times / mileages in accordance with the manufacturer’s recommendations after You take delivery of the vehicle. We are not interested in the service history of the vehicle prior to You purchasing it. The service does not have to be completed by a main dealer unless You want to maintain a full dealer history, but please ensure that You retain the relevant receipts as proof.

Q. Does my warranty cover diagnostic charges?

A. The warranty does not cover plug in diagnostic charges as there is no set times for doing this. What might take one garage ten minutes to diagnose may take another two hours so these costs cannot be built into the warranty costs. We do however cover physical dismantling charges in the event of a valid claim subject to the warranty maximum claim limit.

Q. Will I have to pay anything?

A. When your claim is authorised this will be for a specific sum of money agreed with Your repairing garage. You may have to pay any warranty excess and / or for components

that are not covered under the warranty, plus any amount over and above the claim limit of Your warranty.

Please see the Gold Cover Warranty Book PDF below for full explanation of coverage.

Download PDF

Extend your A1 Warranty cover

Extend your A1 Warranty cover

You can extend your warranty period for a lot less than you think

There is no better time to extend your warranty than at the time you buy your car.

Extending your warranty is always something you had wished you had done at the time especially when you are presenting with a bill for something that has broken on your car, that 'something' could quite easily been covered at the time you bought your car.

What type of car you have bought will determine how much it will cost you for extending your A1 Approved Warranty.

Standard Vehicle :-

1669195921637de891b5d4b Warranty Normals - Jim Reid Vehicle Sales

High Performance Vehicle :-

1669195926637de896b8540 Warranty Rs - Jim Reid Vehicle Sales

4x4 Vehicle :-

1669195916637de88c7b98f Warranty 4x4 - Jim Reid Vehicle Sales

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