Citroën Car Finance: What are My Options?
When deciding on a new car there are a lot of decisions to make. To list just a few; what model is best for you? Do you purchase a new or a secondhand vehicle? Should you lease or buy? If leasing, what is the best finance solution for you? And how do you ensure that you’ve got the best quote?
This article aims to shed some light on these often confusing questions, to help make the process of choosing a new car less daunting and more exciting - just how it should be!
What is Citroën Car Finance?
Citroën car finance, in the most basic sense, is an agreement between Citroën, a Citroën dealership such as CitroenOnline and yourself, in which you are afforded the opportunity to sequentially pay for, usually on a monthly basis, the cost of renting or owning a car for a set amount of time.
Opting for a Citroën finance option
may seem like the more complex option, especially if you have only ever bought outright before. However, such options carry with them many benefits, such as enabling you to have a better car than you would be able to afford if you were buying direct.
Here at CitroënOnline, we have tried to make the process as simple as and affordable possible. With our exclusive range of finance solutions, you are able to select only the option that best suits you and your circumstances.
What are my Citroën Car Finance Options?
To make the whole selection and process even easier we have kept our Citroën car finance options down to three choices - each serving a different customer need so that we are sure you will find one to suit you and your situation.
Sometimes referred to as an Operating Lease, Contract hire is available to both Business and Private users.
With Contract Hire you pay an amount each month for the use of the chosen vehicle. The cost per month is based on a predetermined rate at which the Citroën vehicle will depreciate over the renting period. This will also take into account the period and the average mileage that will be covered, this will be pre-agreed with the client and dealer before embarking on any contract hire.
It is worth noting that every car dealers view of a vehicle's future value can vary dramatically and in some scenarios can result in dramatic differences in comparable monthly rental payments. In the same way, Citroën vehicles that hold their value more efficiently will cost less each month than vehicles with a lower initial cash price.
At the end of any hire contract all that needs to be done is to hand the vehicle back. However, there will be additional costs should the vehicle's condition be questionable or the mileage vastly exceeds what was pre-agreed.
ELECT3 - Personal Contract Purchase
Being a Personal Contract Purchase (PCP), Elect3 is only available to private users.
With Elect3 - similar to a Contract Purchase contract - you pay an initial deposit. This deposit, depending on the selected Citroën vehicle, can be anything from 5% to 40% of the vehicle price, on receipt. It is worth adding here that on some Citroën cars, manufacturer deposit contributions are also offered to assist with this. To discover more about our wide range of deals at CitroënOnline, please visit our website
With our Elect3 finance option, we allow you to choose the monthly term period; either 25, 31 or 37 depending on what suits you best. You will also need to calculate an annual mileage allowance that ranges between 6,000 and 30,000 miles. If you know you will exceed 30,000 miles, an Elect3 finance option is not for you. View alternative Citroën car finance options here.
After both of these have been selected and agreed upon, Citroën will calculate a minimum future value of your car. Your monthly payments will be based on the difference between your initial deposit and this future value. With Elect3, you are the registered keeper of the car from day one.
At the end of the agreement, you are then given three further options to cater for all needs. Once your agreed term is up, simply select one of the following:
You can buy your car outright buy paying the Guaranteed Minimum Future Value amount and securing continued full ownership of your car.
You can opt for a part exchange option for any new Citroën car using any remaining equity the car has as the deposit on the new one.
Finally, you can of course, return the car to CitroënOnline.
The flexibility that we offer here at Citroën once the Elect3 contract has come to its end makes this option perfect for you, if you know that you will be looking to change your car for a new Citroën vehicle every 2-3 years.
Hire Purchase/Instalment Credit
Hire Purchase or Instalment Credit - sometimes referred to as a Purchase Plan - is available to both Business and Private Citroën users.
Due to its flexibility and affordability by nature, it is the most suited packaged if you are looking to own your vehicle but require a more compromising payment agreement than buying outright.
Citroën has made driving away in a brand new vehicle as easy as possible. Following the selection of your new car, you need to choose the size of your deposit - this can range from 5% to 50% of the new Citroën vehicle price. Next, agree on a term with you Citroën dealer. This can be anything from 12 to 60 months, depending on what suits your budget. Once this has been agreed and is in place, here at CitroënOnline we will calculate an affordable fixed monthly payment, and when you make your final payment the Citroën car officially becomes yours!
Citroën Car Finance: Get a Quote
We are proud at CitroënOnline to be able to say that what we offer is simple and efficient financing, and our dedicated team are on hand to help you find the best possible package for you. We will even handle the paperwork and delivery for you!