Renault Finance Agreement

Renault Finance Agreement: Understanding the Basics

Renault is a well-known French automaker that has been producing cars and vans for over a century. When it comes to buying a new or used Renault vehicle, one of the options that you might consider is going through Renault Finance to finance your purchase. In this article, we will help you understand the basics of a Renault Finance Agreement, so you can make an informed decision when buying a Renault vehicle.

What is a Renault Finance Agreement?

A Renault Finance Agreement is a type of car finance that allows you to pay for a Renault vehicle over a series of months or years instead of paying for the full cost upfront. Renault offers several types of finance packages, including Hire Purchase (HP), Personal Contract Purchase (PCP), and Lease.

Hire Purchase (HP) is a simple agreement where you pay a deposit based on the value of the vehicle, and then the remaining balance is paid off in fixed monthly instalments. Once you have paid off the full amount, you own the vehicle outright.

Personal Contract Purchase (PCP) is similar to HP, but the monthly payments are typically lower, as you are only paying for the depreciation of the vehicle over the term of the contract. At the end of the contract, you have the option to return the vehicle or make a final payment to own it outright.

Lease, also known as Contract Hire, is a type of finance agreement where you pay a fixed monthly rental fee for the use of the vehicle for a set period. At the end of the agreement, you return the vehicle to the finance company.

How does a Renault Finance Agreement work?

Before you apply for a Renault Finance Agreement, you need to choose the type of finance that suits you best. You can apply for finance online, over the phone, or in-person at a Renault dealership. Renault Finance will carry out a credit check and will assess your affordability before agreeing on the finance deal.

Once you have agreed on the finance package, you will need to pay a deposit, which could be as little as 10% of the vehicle`s value. You will then start making the monthly payments until the end of the contract term. The finance agreement will also include an APR (Annual Percentage Rate), which is the interest rate that you will be charged for borrowing the money.

In summary, a Renault Finance Agreement allows you to spread the cost of buying a Renault vehicle over time. You can choose from several types of finance packages, including Hire Purchase, Personal Contract Purchase, and Lease. Before you apply for finance, it is important to understand the terms and conditions of the agreement and ensure that you can afford the payments.