Alphera Select, our personal contract purchase product (PCP), is our most popular car finance product for both new and used cars. This is because of its key feature, which we call the Guaranteed Future Value (GFV). Alphera Select can be a flexible alternative by deferring a proportion of the car’s total value until the end of the agreement as an optional final payment. This amount is the GFV and is the key to how Alphera Select works.
More car for your money
As you are deferring a proportion of the car’s value until the end of the agreement, your monthly payments could be less than you think. This may give you the flexibility to add more options to your car, or even upgrade to a higher specification model, all within your budget. Or you can simply pay less a month for the car you want, compared to Hire Purchase, our alternative product offering vehicle ownership at the end of the agreement (although the total amount payable for ownership may be higher).
How it works
Simply choose a vehicle you like and we’ll arrange a finance plan that suits you, taking into consideration the contract length (typically between 24 and 48 months), an estimation of your annual mileage and your deposit contribution. Whether you have a monthly payment or particular deposit in mind, we can tailor a repayment plan to suit your budget and lifestyle.
The importance of the GFV is that it lets you keep your options open at the end of your agreement. Your decision will be based on the future value of the car, which is why it’s important to accurately estimate your mileage. Depending on what the actual market value is when you come to change your car next time, you have the flexibility to select from one of the following options:
- Pay the optional final payment and own your vehicle*
- Part-exchange your vehicle and choose another vehicle**
- Hand the car back***
In both the first two options, if the value of your car is more than what we predicted for you in the GMFV, you get the benefit.
If the GFV does not meet the market value, you are protected by the guarantee in the third option, do not have to pay the final payment, and can hand the car back to us. However, your decision will need to factor in any additional charges relating to excess mileage and the condition of your car, which will influence the final market value.
Terms and Conditions
*The optional final payment (together with a credit completion fee and an option to purchase fee) are payable at the end of the agreement if you decide to purchase the vehicle. We remain the owner of the vehicle during the agreement and we may become entitled to recover the vehicle if you do not keep up your repayments.
**If you part exchange the vehicle for a new vehicle, any surplus in the vehicle’s part exchange value over the optional final payment (and credit completion fee and option to purchase fee) can be used as a deposit towards a new vehicle.
*** If the vehicle’s value is less than the optional final payment, you can pay the credit completion fee and hand it back to us without paying the optional final payment. However additional charges may be payable for both excess mileage (actual mileage higher than agreed contract mileage) and vehicle condition (using the standards set by the British Vehicle Rental and Leasing Association (link to BVLRA vehicle condition guide). If your agreement is regulated by the Consumer Credit Act, this contractual option will be in addition to your statutory right to end the agreement early.