Finance Products

In today’s world of financial turmoil it is essential that our customers know that they are dealing with an organisation that employs staff that are fully conversant with motor finance and the regulations surrounding it. Jigsaw Finance is delighted to have been recognised by the Finance & Leasing Association (FLA) as SAF approved following their commitment to raising standards for the benefit of motor finance customers.

Hire Purchase (hp)

What is Hire Purchase?

This gives customers the eventual ownership of the vehicle. Hire Purchase is similar to borrowing a sum of money from a bank and paying it back over a fixed period of time, with interest. Hire Purchase is a type of secured loan which involves the lender securing the loan against an asset. Hire Purchase gives the individual additional rights over those of a personal loan and is only available through dealers that have passed the stringent approval process of the finance companies.

Motorloan

Motorloan has the same payment profile as Hire Purchase however the terms of the product allows a high loan to value. Customers still have many of their rights under the CCA and gain the flexibility to obtain the loan they require.

Top up loan

Top Up Loan is a Motorloan that is specifically designed to cater for negative equity and would be taken out in conjunction with the a core loan.

Personal Contract Purchase (PCP)

What is Personal Contract Purchase?

Personal Contract Purchase will enable your customer to purchase their next car with lower monthly repayments. This is achieved by deferring an amount of the total cost of the vehicle to the end of the contract. This is known as the Guaranteed Minimum Future Value (GMFV). The customer’s monthly payment is calculated on the difference between the vehicle cost and the amount guaranteed by the finance company at the end of the contract, as well asany deposit paid by the customer. Effectively the customer is paying the depreciation on the vehicle during the finance agreement. At the end of the contract there are four options available for the customer to exercise:

  1. Return the vehicle to the finance company. As long as they have not exceeded the agreed mileage, they will have nothing more to pay.
  2. Pay off or refinance the outstanding balloon payment if they want to keep the vehicle.
  3. Part Exchange the vehicle for a new one. If the trade-in value is greater than the GMFV, the difference can be used towards a deposit on the next agreement.
  4. Sell the vehicle privately and keep any profit over and above the GMFV.

Low Payment Plan (LCP)

What is Lease Purchase (Low Payment Plan)?

Low Payment Plan will enable your customer to purchase their next car with lower monthly repayments. The way this is achieved is by deferring an amount of the total cost of the vehicle to the end of the agreement. This amount is known as the Residual Value (RV). It is the customers responsibility to settle the final payment either through additional finance, cash or settlement by part-exchange.

At the end of the agreement your customer would have three options:

  1. Pay off or refinance the outstanding balloon payment if they want to keep the vehicle.
  2. Part Exchange their vehicle for a new one. If the trade-in value is greater than the RV, the difference can be used towards a deposit on the next agreement.
  3. Sell the vehicle privately and keep any profit over and above the RV.

Jigsaw Finance Ltd have a CCD solution for the dealer network. We can offer 2 types of status: Compliant Intermediary (Ci) or Appointed Intermediary (Ai). Both statuses have software provided by ITC at the core of the process: An 'Ci' can transact business using the free software for themselves and it will provide cover for all your other lenders... Or as a 'Ai', Jigsaw Finance will use the software internally and take on the full CCD responsibility.