Renault Scenic Finance: Options and Considerations

The Renault Scenic, a popular multi-purpose vehicle (MPV), offers practicality and space for families. However, purchasing a car outright can be a significant financial commitment. Exploring various finance options allows you to spread the cost and drive away in your chosen Scenic without a large upfront payment.

Common Renault Scenic Finance Options

• Personal Contract Purchase (PCP): This is a very common option, especially for new vehicles. With PCP, you pay a deposit followed by monthly payments for a set period (typically 2-4 years). At the end of the agreement, you have three choices:
  • Pay the optional final payment (also known as the balloon payment) to own the car.
  • Return the car to the finance company (subject to mileage and condition).
  • Part-exchange the car for a new one, using any equity as a deposit.

  PCP often results in lower monthly payments than other finance options, but you don’t own the car until you pay the final balloon payment. Mileage restrictions and potential excess wear and tear charges are important considerations.

• Hire Purchase (HP): With HP, you pay a deposit followed by fixed monthly payments over a set period. The monthly payments are higher than PCP because you are paying off the entire value of the car. Once you’ve made all the payments, you automatically own the vehicle. HP is a good option if you want to own the car outright at the end of the agreement and are comfortable with higher monthly payments.
• Personal Loan: You can borrow a lump sum from a bank or building society to purchase the Scenic outright. You then repay the loan in fixed monthly installments over an agreed term. Personal loans offer flexibility as you own the car from the outset and can sell it at any time. Interest rates on personal loans can vary, so it’s crucial to compare offers from different lenders.
• Renault Finance: Renault offers its own finance packages, often providing competitive rates and specific deals on their vehicles. Exploring Renault Finance options directly through a Renault dealership or their website is a worthwhile step.

Factors to Consider When Choosing Finance

• APR (Annual Percentage Rate): This represents the total cost of borrowing, including interest and fees. Compare APRs from different lenders to find the most cost-effective option.
• Deposit: A larger deposit usually results in lower monthly payments.
• Monthly Budget: Determine how much you can comfortably afford to pay each month. Don’t overstretch yourself financially.
• Loan Term: A longer loan term reduces monthly payments but increases the total amount of interest paid.
• Mileage Restrictions (PCP): If considering PCP, accurately estimate your annual mileage to avoid excess mileage charges.
• Condition of the Car (PCP): Ensure you maintain the car in good condition to avoid excess wear and tear charges when returning it.
• Credit Score: Your credit score significantly impacts the interest rate you’ll be offered. Improve your credit score before applying for finance to secure a better deal.

Before committing to any finance agreement, carefully read the terms and conditions and seek independent financial advice if needed. Consider all available options and choose the finance plan that best suits your individual circumstances and budget.