Personal Contract Purchase with Lotus Finance

We were recently looking at changing our Lotus and getting a newer model so we looked into a variety of financial deals with independent dealers and also with Lotus Finance. If you are in this position I would advise you to do the same as there are numerous deals out there available however there is a real mix of interest rates and also deals.

lotus finance

We opted for what is known as personal contract purchase which is a deal that is suitable for private clients but if you are purchasing for a business it can also be adapted to fit the purpose. The agreement was easy to understand and we were given a few different options within the agreement. Initially we had to pay between 3 – 5 years of monthly payments and we opted for the mid term 4 years as we felt we may want to change again by then. The second part of the deal was to either purchase the car at the end of the 4 years at a price we would agree on at the start, or we could just give the car back however be warned there were quite a few hoops to jump through here. Alternatively we could part exchange the car for another car.

Pros and Cons of Lotus Finance

The main pro of the PCP Lotus Finance deal is that there are a lot of choices open to you as you decide either to buy the car or give it back. Added to this is that the price you get for the car at the end is agreed before hand so you know how much you have to pay which means if you bought the car and sold it on you could be in pocket. If you don’t want to keep the car you just give it back but be warned there is a limited mileage and the car has to be in immaculate condition.

The disadvantage of the this finance package is that it does have a higher interest rate than if you are buying by hire purchase. Also something I didn’t realise was that the price of the vehicle shows up on your personal credit score so that may have a knock on effect on any other loans you may want to take on.