Mike Bailey, CAVA Finance 0161 222 9599
Contact Mike, News

Over the last few years the popularity of PCP (Personal Contract Plans) has increased in the UK. A PCP plan gives you the ability to acquire a new vehicle for an agreed length of time, with the option to trade in the vehicle at the end of the agreement or pay off the guaranteed future minimum value and keep the vehicle.

Of course, like every industry, the motor finance industry has been hit hard by the impact of the pandemic but there has been a significant spike of interest around personal vehicles and motorhomes recently.

CAVA can help with Personal Vehicle Finance

Whilst CAVA Finance primarily focuses on commercial, minibus and taxi finance, Mike has a wealth of knowledge and experience across both business and personal vehicle finance.

During the months in which car dealerships were closed, applications dropped by 82% but have since increased. From July to August this year new and used car finance applications rose by 24% in comparison to the previous year, according to Experian.

It is looking to be a strong September for the industry, with new 70 plates being released earlier in the month.

PCP is one of the most popular ways to finance a vehicle, new or used, because of lower monthly payments. One thing to note if you are considering PCP, is that lenders will be assessing people’s financial situations even more carefully than usual, due to the potential impact of coronavirus on finances, to ensure the deals offered are manageable and affordable in the long term.

The PCP Calculation

The amount you’ll pay each month on a PCP agreement is determined by firstly your deposit amount and secondly, the estimated value of the vehicle after the length of your agreement payment term.

You won’t own the vehicle unless you pay a final ‘guaranteed minimum future value’ sum, which is based on the predicted residual value of the vehicle at the end of your PCP agreement.

If you’re looking at a used vehicle, be aware that age is not just a number! The age of the vehicle could impact the cost of your monthly repayments or could mean you’re not able to find a suitable PCP agreement because the age of the vehicle makes it difficult for lenders to predict its residual value.

New or Used – what’s best?

Currently the figures reported by the FLA are much stronger for used vehicles than new, there are a number of factors why, from the impact on finances to the dip in production and closure of dealerships but ultimately it’s your decision.

If you’re considering a new or used vehicle for personal use and you require any impartial, no obligation advice, or if you’re considering your finance options but don’t know where to start, please get in touch. You can call Mike on 0161 222 9599 or use our contact form and he’ll be happy to discuss your needs.


Assets, Contact Mike, Hints & Tips, News

As a business owner you’re likely keeping your ear to the ground surrounding the available support to help you and your company survive during the Covid-19 outbreak.

The government have announced details of the CBILS which is a new scheme which facilitates a range of Business Finance products. These are available to small businesses across the UK who are experiencing a loss of revenue and as a result have had their cashflow impacted by Coronavirus.

The scheme allows banks and lenders with a Government backed guarantee, which allows these companies to provide Asset Finance in order to support businesses who are looking to invest in new or used assets.

Without the scheme it would be difficult for companies to raise the finance required at this time, due to the impact on their cashflow. The lenders will be able to accommodate funding for Asset Finance between £50K and £250K.

To briefly summarise the main areas of criteria are;

  • You must be a UK based business
  • The application is for business purposes, not for private individuals
  • You are not able to re-finance a product already on a finance agreement

There are other certain eligibility and criteria you should be aware of, I’ll be happy to discuss these with you and provide further details should you be looking to take advantage of the CBILS.

The scheme is managed by the British Bank and allows access to a range of business finance products through selected funders.

For further information and to discuss applying for the scheme, contact Mike on 0161 222 9599.


Contact Mike, Hints & Tips, Minibus/Coach Finance, News
Globally we are facing a time of great uncertainty, the impacts of which are being felt across all industries.

In view of these unprecedented circumstances, we wanted to reassure our clients that our funders will work with our you to take your individual circumstances into consideration, if your business has been impacted by the Coronavirus.

From the shutting down of vehicle manufacturing factories to the impact closer to home for coach, minibus and taxi operators, the automotive industry is facing economic shockwaves caused by the reaction to the virus.

This is a particularly tough time for those who rely on customers travelling, with self-isolation or even mass quarantines being introduced, taxi and coach operators are seeing a loss of bookings, with staff being prevented from travelling or customers putting holiday plans on hold.

As mentioned above, funders are treating each case individually but may be able to assist with ‘finance holidays’ to ease the financial strain of a loss of custom during this time.

I will be offering free advice to clients with concerns or difficulties. If you would benefit from this, you should contact me here and we can discuss in more detail.

Similarly, if you have any specific queries relating to your contracts or future vehicle and asset purchasing needs, which you feel may be impacted by Coronavirus, please let me know.

Please get in touch with me should you need any more information.

You’ve probably been wondering why we’re called CAVA Finance… Yes, we do put the “fizz” back into finance but we weren’t named after the wine! Keeping things simple is our goal, and so it came about that we’d be CAVA: Cars and Vans and Asset Finance. Straightforward, simple and accessible – just like our finance rates. Want straightforward guidance on finance for your business needs? Call Mike Bailey on 0161 222 9599 or email him at [email protected]