Every great Mercedes-Benz driving experience should be matched by an equally great Mercedes-Benz ownership experience!
At LSH Auto UK we believe that every great Mercedes-Benz driving experience should be matched by an equally great Mercedes-Benz ownership experience! So here is a guide to help you choose between the various Mercedes Finance options we have available to facilitate the purchase of a New Mercedes or an Approved Used Mercedes car for personal use. Read on to discover the difference between the various plans and what choices are available when your agreement comes to an end.
Mercedes Agility - Personal Contract Plan
A Personal Contract Plan (PCP) is a flexible method of financing a vehicle over a fixed term. The agreement allows you to defer your decision as to whether you purchase, hand back or part-exchange your vehicle until the end of your agreement.
At the start of a PCP agreement you decide how much you would like to put down as a deposit, part of which can be a part exchange, and also decide the term of your agreement as well as your expected annual mileage. You will then be advised of your ongoing monthly payments and of the Optional Purchase Payment should you wish to buy your Mercedes-Benz outright.
The Optional Purchase Payment helps you guard against the risk of unplanned depreciation and enables you to benefit from lower monthly payments as you are only financing a proportion of the vehicles value, the depreciation. Throughout your agreement you simply pay your agreed monthly payments which helps you to easily plan your budget.
Because you defer your ownership decision until the end of the agreement it means that if your circumstances change then you can also change your mind. At the end of the agreement your options are:
- Purchase your vehicle - Purchase your Mercedes-Benz by paying the Optional Purchase Payment and Purchase Activation Fee of £10. This will complete the purchase of your Mercedes-Benz, leaving you free to simply enjoy your vehicle.
- Hand back your vehicle - If you decide to return your vehicle to us, it must be in line with our Vehicle Return Standards, as vehicle condition, excess mileage and other charges may be payable.
- Part-Exchange for a new vehicle - Pay the Optional Purchase Payment and Purchase Activation Fee of £10. This will complete the purchase of your vehicle, allowing you to part-exchange for a new Mercedes-Benz.
Mercedes Hire Purchase Agreement
Hire Purchase (HP) is a straightforward route to full car ownership and is the perfect way to buy a Mercedes-Benz if you want to spread the overall cost over a fixed term. You decide the amount you would like to put down as a deposit on your chosen Mercedes-Benz, part of which can be a part exchange, and agree the term of your agreement. Then throughout the term of your agreement you simply pay the regular instalments over the agreed term until the remainder of its value is repaid, together with the option to purchase fee of just £10, you will then own the vehicle outright.
Besides choosing your fixed monthly payment you can also vary the amount of your initial deposit and the repayment term, enabling you to tailor the financial agreement to suit your own financial situation, and furthermore, the monthly payments are not based on annual mileage.
Mercedes Personal Operating Lease
A Personal Operating Lease is the perfect solution for those who want to drive a new Mercedes over a fixed term, with lower monthly rentals and without the worries or commitment of full ownership. At the start of your agreement you pay an advance rental upfront and then your monthly rental is based on the difference between the initial value and its projected value at the end of the agreement. The main advantage of this type of Mercedes finance is that because only a proportion of the cars value is repaid the monthly payments are lower.
At the end of your Personal Operating Lease agreement you simply return the car with no further payments, subject to it being in line with our Vehicle Return Standards, as vehicle condition, excess mileage and other charges may be payable.
Mercedes Personal Contract Hire
A Mercedes Personal Contract Hire agreement enables you to enjoy driving a Mercedes-Benz without having to take on full ownership. With this option you lease your vehicle for a fixed period based on your agreed annual mileage and for a fixed monthly rental which also includes the cost of your Road Fund Licence. At the start of your agreement you pay an advance rental upfront. Your monthly rentals are based on the difference between the initial value of the car and its projected value at the end of your agreement.
As only a proportion of the vehicle’s value is repaid, the depreciation, the monthly payments remain lower. With a Personal Contract Hire agreement you can also choose between ‘No Maintenance’, ‘Service Only’, ‘Full Maintenance’ or ‘Full Maintenance with Tyres’ options. This means your monthly costs are fixed over the term of the agreement allowing you to budget easier by reducing the risk of any unexpected costs.
At the end of your Personal Contract Hire agreement simply return your vehicle with nothing more to pay, subject to it being in line with our Vehicle Return Standards, as vehicle condition, excess mileage and other charges may be payable.
Contact LSH Auto UK
If you have any further queries regarding any of our Mercedes finance deals or you would like to arrange a test drive contact us at your Nearest Mercedes Dealership.