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In order to comply with the minimum Euro Emissions Standards, London for Transport have introduced the new T-charge, also known as the Emissions Surcharge whereby older cars (which do not meet the Euro minimum vehicle emissions standard), are charged an extra £10 on top of the congestion charge of £11.50 per day, although historic tax charged cars and commercials manufactured before 1973 are exempt.  However, vehicles which have exemptions on their congestion charge, will in most cases , have the same exemptions on their T-charge.  

Drivers of vehicles which do not meet the Euro emissions standards will have until midnight on the following charging day to pay their congestion and T-charge which may be paid together.  Failure to pay will result in a penalty charge (PCN) of £130 which is reduced to £65 if paid within 14 days.  If you do not pay within 28 days, a 50% surcharge is added to the penalty, called a charge certificate, increasing the fine to £195.  You can of course challenge the PCN.

With this in mind, should you enter the congestion charge zone in London 5 days per week and do not warrant any discounts or exemptions, your weekly charge for entering for work purposes (5 days for the week) is £107.50.  Your weekly extra charge for work purposes with an older car would be £50 and should you work 4 weeks that month, your charge would be a further £200.  For this kind of money you would be able to afford, for example, one of our current offers, a brand new Skoda Octavia 1L TSi SE Technology Manual on business or personal contract hire from £135.66 + VAT.  Even if you only go into London for a few days per week, you may find it less expensive to change your vehicle for a newer version, or even get a ultra-low emission vehicle e.g. electric and stop paying the congestion charge and T-charge altogether. 

For more information, contact one of our brokers, Paul, Phil or Lawrence for an informal chat.

Personal Contract Purchase (PCP)

Personal Contract Purchase (PCP) is one way in which an individual can afford a new car without having to pay for the car in one lump sum.  By paying for the vehicle over a period of months, usually 24, 36 or 48, consumers are able to spread the cost of a new car, enabling purchase of a more economical, environmentally friendly vehicle which should save the consumer money in the long term. 

However, by going down this route, there will be a deposit due at the beginning of the agreement and a balloon payment at the end.  When you choose this type of agreement, your monthly rentals will be lower, than if you pay your deposit and then pay for your car by standard hire purchase.  The balloon payment will be calculated at the beginning of the agreement and is then set (guaranteed value), therefore, at the end of the agreement if the vehicle is not worth as much as the guaranteed value (balloon), as a PCP client, you are entitled to give the car back to the lender should you wish.  Although it should be pointed out that you are then left without a car.  However you would be able to enter back into another PCP.  In some instances, should the guaranteed value be less than the vehicle is worth you may use any equity as a deposit on a new vehicle.

In Summary

  • Consumers are able to afford new vehicles and spread the cost over a period of time.
  • Payments are reduced by having a balloon payment at the end of the agreement.
  • If the consumer wishes, they can reduce the balloon payment by increasing their monthly payments and are therefore more likely to have equity at the end of the agreement.
  • Should the consumer wish to, they are able to give back the vehicle at the end of the agreement without paying the balloon payment and choose not to take ownership, (note: this does depend on the condition and mileage of the car, any excess mileage and damage will have to be paid for by the consumer).
  • Consumers may use the car they have just finished paying for, by trading it in and any equity left over and above the guaranteed value may be used as a deposit for a new PCP.


Are you looking to purchase a van

In this short blog we talk about the different ways in which you can invest in a new van for you or your business.   There are several ways in which to purchase a new van.  The 3 main options are to buy it outright, contract hire, and lease purchase.  We will take each one individually.

Buying outright

By buying your van outright, you will of course save on interest rates and you can do what you wish with your van without any restrictions, however, you are making a large payment and considering vans, like cars, lose the majority of their depreciation within the first six months, you will not get back what you paid for it.  So when deciding to purchase your van, you have to ensure that the van has the correct capacity and height and the financial out lay is right for your company.  You do not want to pay for a van and find that within a year it is not fit for purpose as your business has changed.  Some if the things to think about are:


Should You Add Maintenance To Your Business Contract Hire Agreement                                                                     

When choosing a vehicle for your business, you will be asked the usual question of what make, model, type of transmission, annual mileage and the number of months you wish to hire your new vehicle for.  However, another question you are always asked is “do you want maintenance”.  In many cases clients are not sure what this actually entails.

By adding maintenance into your contract, your vehicle will be covered by the contract hire company for routine servicing, and some include tyres and exhaust replacement (Ensure you are fully aware of what is and what is not included).  However, you can in some instances purchase tyre only maintenance packages, but none of the above will include damage i.e., a nail in the tyre. 

Should you take out a maintenance agreement, you also have the contract hire company behind you should there be any mechanical problems with your car.  (Although of course, should you take out an agreement through us, we will endeavour to liaise with the contract hire company on your behalf, should you wish us to).

By taking out a maintenance agreement, your car will be serviced regularly, by franchised garages at the right times.  If included, or if a tyre only contract is taken out, all tyres will be replaced that need to be, using top brands by fully qualified fitters.

When taking out the maintenance option, you will be given a contact number which you call when your vehicle requires servicing or needs a change of tyre. 

We suggest that before taking out a maintenance package, it would be advisable to research the servicing schedule for your vehicle, consider the number of miles you will be covering and the length of the contract hire agreement and then calculate whether it is worth you adding the cost to your monthly rentals, but some customers do like the service option as it spreads the costs over the length of the contract hire agreement.  Thus adding maintenance to your contact can make sense, particularly for high mileage, long contract hire rentals. 




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Wishing you all much happiness and success for 2019

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Troman Finance Limited is authorised and regulated by the Financial Conduct Authority for credit-related regulated activities.  Firm reference number 668753.  Troman Finance Limited is a credit broker, not a lender and work with a panel of lenders.  Troman Finance Limited is a company registered in England and Wales; company number 2564927.  Our registered address is 4 Stirling Court Yard, Stirling Way, Borehamwood, Hertfordshire, WD4 2FX.  Information Commissioners registration Z6891335.  VAT registration number 596 1125 30.