Buying a car on finance in Guernsey

The people of Guernsey are turning loans and finance more and more to spread the cost of buying their new car.

Find.gg have teamed up with several Guernsey lenders and finance brokers. This enables us to offer a variety of different finance options to ensure that you get the best deal when buying your car in Guernsey.

Better still our partners take care of the whole process for you. Let them organise the loan and complete the paperwork – What could be easier?

Find out just how little per month your next car could cost you, you might just be suprised!

Car Finance in Guernsey explained -

Conditional Sale (Guernsey) – The most popular way to purchase your new car or boat. After paying an initial deposit to secure the purchase, you pay a fixed monthly repayment over a 1 to 7 year loan period. As soon as the last payment is made you will completely own the car.

Benefits -

• Fixed payments so you are in control of your budget

• You own the car once the final payment has been received

• Just the deposit to find

• Payment protection available - Protect your payments against the unexpected like accidents, illnesses and unemployment

Down Sides -

• There is no benefits to paying larger monthly repayments as the loan is a fixed term and amount.

• You will often have to take out a longer loan period to get the lower monthly repayment you desire

Conditional Sale with a Balloon (Guernsey) – Works in much the same way as normal conditional sale. However the balloon model the monthly repayments are either lower or over a reduced period of time.

After your initial deposit has been paid, you will pay a lower (fixed) monthly repayment. This is normally over a 2 or 3 year period. Once this period has come to an end you are obliged to make a larger 'balloon payment' to be paid.

By using the balloon finance model you keep your monthly payment down, and once the balloon payment is due, enable you to exchange your car for a shiny new one.

This method of financing in Guernsey is particularly good if you like to change your car every 2-3 years.

Benefits -

• Fixed payments so you are in control of your budget

• Complete ownership of the car - just pay the balloon payment

• Lower monthly repayments

• No large cash outlay needed

• Upgrade your car every 2 to 3 years  

• Payment protection available - Protect your payments against the unexpected like accidents, illnesses and unemployment

Down Sides -

• There is no benefits to paying larger monthly repayments as the loan is a fixed term and amount.

• The car is not completely owned by you until the balloon payment has been made

Lease Hire for businesses and self employed in Guernsey– This model is only available for businesses and the self-employed.

This is a very tax efficient way in which to finance your car or commercial vehicle. In most cases you will be able to offset your full monthly repayment against your Income Tax in Guernsey.

Lease Hire is a great model if you want to use the vehicle as opposed own it. The vehicle can be sold at the completion of the financial arrangement. You will keep most of the sales proceeds.

I say most, as the finance company may withhold about 1% of what the car is sold for or £50.

Benefits -

• Fixed payments so you are in control of your budget

• Very tax efficient - Offset against Guernsey Income Tax 

• No large cash outlay needed

• Use with or without a balloon payment

• Payment protection available - Protect your payments against the unexpected like accidents, illnesses and death – this applies to self employed or partners

Down Sides -

• You will never own the vehicle

Lease Purchase – As with Lease Hire this model is only available for businesses or the self employed.

Works in the same way as a conditional with added Tax advantages. You are able offset the interest element of you monthly repayment against Guernsey Income Tax. This great tax advantage also works in addition to the capital gains allowances that you are able to claim. Why not keep monthly payments down by applying a balloon payment at the end of the term. 

Benefits -

• Fixed payments so you are in control of your budget

• Very tax efficient - Offset against Guernsey Income Tax 

• No large cash outlay needed

• You own the vehicle in the end

• Use with or without a balloon payment

• Payment protection available - Protect your payments against the unexpected like accidents, illnesses and death – this applies to self employed or partners

Down Sides -

• There is no benefits to paying larger monthly repayments as the loan is a fixed term and amount.

To find out just how little per month your next car could cost you, just click here. You might just be surprised!

 Just work out your repayment each month using our online calculator and we'll do the rest.