Close Motor Finance

Close Motor Finance, a trading style of Close Brothers Limited, specializes in providing vehicle finance solutions primarily through dealerships across the UK. They cater to a wide range of customers, including those with prime credit scores and those with more complex credit histories.

Core Services: Close Motor Finance focuses on hire purchase (HP) agreements. With HP, the customer pays off the value of the vehicle in monthly installments, becoming the legal owner at the end of the term once all payments are completed. This differs from personal contract purchase (PCP) agreements where there’s an optional final payment at the end, and leasing where the customer never owns the vehicle.

Dealership Network: Their business model revolves around partnerships with dealerships. They don’t typically lend directly to consumers. Instead, customers applying for finance at participating dealerships will often be offered Close Motor Finance as one of the potential options. This allows them to reach a broad customer base efficiently.

Credit Risk Assessment: Close Motor Finance considers a variety of factors when assessing credit applications. This includes credit score, income, employment history, and affordability. They have a reputation for being more flexible than some high-street banks, offering finance options to individuals who may have been declined elsewhere. However, this flexibility often comes with higher interest rates reflecting the increased risk.

Customer Service: As with any finance provider, customer service experiences can vary. It is important to research and read reviews from other customers before entering into an agreement. Factors to consider include ease of communication, clarity of loan documentation, and responsiveness to queries or complaints.

Important Considerations: When considering finance from Close Motor Finance (or any finance provider), it’s crucial to:

• Compare APR (Annual Percentage Rate): Don’t just focus on the monthly payment. The APR reflects the total cost of borrowing, including interest and fees. Compare APRs from different providers to find the most competitive offer.
• Understand the Terms and Conditions: Read the fine print carefully. Pay attention to details like late payment fees, early settlement charges, and any other potential costs.
• Assess Affordability: Ensure you can comfortably afford the monthly payments without straining your budget. Consider potential changes in your financial situation.
• Check Your Credit Report: Before applying, review your credit report to identify any errors or inaccuracies that could negatively impact your application.

In conclusion, Close Motor Finance provides a valuable service within the UK motor finance market, particularly for individuals who may struggle to secure finance through traditional lending channels. However, as with any financial product, it is vital to conduct thorough research, compare options, and understand the terms and conditions before committing to an agreement.