Helping you finance your new Peugeot, Renault, Dacia or Used Vehicle
in a clear and transparent manner is our goal at J.J. Burke Car Sales
At JJ burke Car Sales, our finance team is dedicated to finding a payment plan that works for you.
When you decide to buy a car with us, we understand that it a huge undertaking and we want you make sure that you are informed and properly guided through every step of the car finance process.
Remember that you are in control and we are only here to facilitate you as best we can.
After a discussion with our finance team, we want you to have:
The main types of finance that we offer to our customers are PCP (Personal Contract Plan) Finance, and Hire Purchase.
While most people will be familiar with Hire Purchase, PCP is a relatively new way of financing your car.
We will discuss below how PCP works so you can see if it is right for you.
What is PCP?
PCP or Personal Contract Plan Finance is a form of car financing that has been introduced to give consumers more flexibility with the terms and conditions of the finance agreement they decide on.
Unlike a hire purchase agreement, you will not actually own the car at the end of the term, but you are left with different options on how to proceed including the purchase of the vehicle, handing the vehicle back or entering into a new deal with us.
The main features of PCP are:
The PCP Process
The PCP process can seem daunting to people at the start but we can guarantee that you will leave us with all your questions answered to your satisfaction.
We want you to walk away with a full and clear understanding of what exactly your PCP deal will entail so do not be afraid to ask us anything.
1. You decide on the vehicle you would like to purchase and we decide on a price that works for us both.
2. We will sit down with you and decide on:-
a) How much mileage you plan to do?
b) What you would like to pay per month?
c) How much of a deposit you would like to pay?
3. A deposit based on the value of the vehicle and term of the loan is secured, and we can agree on a manageable monthly payment plan for you. At this stage we will also decide on the Guaranteed Future Minimum Value of the Car so there will be not surprises down the line.
4. We will send your application to our finance partners to be reviewed. 80% of our customers will receive same day approval.
5. When your finance is approved we will contact you and that’s it - Drive away in your new vehicle!
At the end of the term there are a couple of options available to you which we speak about in more detail below.
Here is a working example for you of how a pcp deal works:
A customer sees a car on our website that they would like to buy, a Peugeot 3008 Active 1.6 BlueHdi 120 bhp. They get in contact with us and we organise a time that suits us both for them to call into us.
After a test drive the customer is happy with the car so we sit down and discuss the finance options available to them.
The customer only does mileage of around 15,000 km per year and they like to change cars every 3 years or so. In this case PCP finance is the best fit as it leaves the customer with different options at the end of the term including changing to a new vehicle.
The price is of the new Peugeot 3008 is €32,015. Based on this price and the mileage the person plans to do allows us to calculate the projected value of the car at the end of the loan term. This is known as the GMFV or the Guaranteed Future Minimum Value. This is the price that the finance company will pay for the car at the end of the term provided that all the terms of the deal are met. We explain to the customer that in many cases the value of the car actually exceeds the GMFV so they can use the extra equity to finance a new deal with us.
For example, in this case the GMFV of the car is € 11,221.51. If at the end of the term the value of the car is calculated to be €15,221.51, then the customer has equity of €4000 to use a deposit towards their next car.
The customer then decides on the deposit they would like to put down on the car. We explain to them that we normally look for a deposit or trade in of between 10-30%, with higher deposits leading to lower monthly repayments.
The customer decides they want to place a deposit of €8000 which allows for monthly payments of €425.59 per month for 36 months. The figure quoted is specific to this deal and you may want to place a lower deposit but it will lead to higher monthly repayments.
At this stage we have:
The customer was happy with the terms agreed with us so we sent it off to our finance partners for approval. They came back within 24 hours with approval and the customer is now free to drive away in his new vehicle.
What happens at the end of the term?
Near the end of his 36 month term, the customer was contacted to see how they would like to end their agreement with us. We invited them in to discuss their options where we outlined the 3 ways in which we can proceed:
Value of the car at the end of the term - GMFV
The equity available to the customer to use as a deposit for a new vehicle.
Call us on 094 95 41359 should you have any queries
Make an application online below.