Information On Our Finance Service

1. The Financial Conduct Authority (FCA)      

The FCA is the independent watchdog that regulates financial services. Please use this information to decide if our services are right for you.

2. Whose products do we offer?

Carzam Limited is a Credit Broker not a Lender and can introduce you to a limited number of lenders and finance products to assist with your vehicle purchase. Occasionally, we may need to use the services of a credit broker - we will advise you if this is applicable. Please ask us for a list of our finance providers.

We are not an independent financial advisor and do not make recommendation, however, our website provides you with information on products available which may suit your requirements, to assist you in making an informed decision on your purchase. If you need any further information or have questions, our support team is available to assist you.

3. Which service will we provide you with? 

We will provide you with information to assist with your funding decision related to the following Credit Agreements

  • Personal Contract Purchase (PCP) 
  • Hire Purchase (HP) 

4. What will you have to pay us for our Finance Services? 

No fee. You will have access to a quotation which will tell you a

bout the costs of each of the products and any other fees relating to any particular credit agreement or insurance policy. 

We may receive a fixed fee or fixed % of commission from a lender for introducing you to them, calculated by reference to the vehicle model, product or amount you borrow. Different lenders may pay different commissions for such introductions, However, any such amount a lender pays us will not affect the interest rate you pay under your finance agreement, all of which are set by the lender concerned.

5. Who regulates us? 

Carzam Limited is an Appointed Representative of Bapchild Motoring World (Kent) Limited which is authorised and regulated by the Financial Conduct, registration number 686118. You can check this on the FCA Register by visiting https://register.fca.org.uk/. Our permitted activity is to act as a Credit Broker not a Lender.

6. What to do if you have a complaint 

If you wish to register a complaint, please contact us: 

in writing: Carzam ltd, Customer Services, Morely Way, Peterborough, PE2 7BW 

Email / Phone :       customersupport@carzam.co.uk

If you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service  www.financial-ombudsman.org.uk

Carzam Limited. Samson House Celta Road, Morley Way, Peterborough, England, PE2 7BW | Company No. 12209537

Making the right funding decision

Once you have made a decision on the vehicle you wish to purchase, it is important to make the right decision on the finance option that suits your circumstances now and for the period of the funding agreement.

Our website provides full details on the finance products available along with ‘frequently asked questions’ which may assist your understanding. Carzam specialists are also available to you at any point of your purchase journey and can assist you in understanding the funding options available to you. The funding of your vehicle is an important decision to make, please don’t hesitate to seek clarity or ask any questions. Below is a summary of the funding options, explaining the potential benefits and limitations of each, please ensure that you understand the agreement you decide to enter in to.  

Hire Purchase (HP)

Outline 

Features 

Potential limitations 

A simple method of financing that gives you the certainty of a fixed interest rate, and fixed monthly payments throughout the agreement. The initial deposit and repayment period can be structured to help meet your budget and the length of time you expect to keep the vehicle. The deposit can be constructed form the trade in value of your current vehicle or in cash. 

 

  • Fixed monthly payments 
  • Ownership is transferred to you once the agreement is fully paid 
  • This type of agreement is covered by the Consumer Credit Act 1974, this would allow:- 
    • Lump sum payments can be 

made during the term of the agreement 

  • Early settlement is possible if the balance of the agreement is repaid 
  • The agreement is secured on your vehicle which means that if you fail to keep up repayments the vehicle could be repossessed 
  • If you put down a lower deposit it could mean a higher risk of negative equity if you settle early or want to change the vehicle before the end of your finance 

 

Personal Contract Purchase (PCP)

Outline 

Features 

Potential limitations 

A form of Hire Purchase (as above) but where a proportion of the cost is deferred to the end of the agreement enabling lower monthly payments during the main term of the agreement. 

 

The deferred amount is referred to as a 

Guaranteed Future Value (GFV) or Optional Final Payment. Your anticipated annual mileage will be used to determine the GFV, it is important that this is accurate for your vehicle use. 

 

At the end of the term, when the GFV remains you will have 3 options: 

  1. Pay the GFV in full to the Lender and keep the vehicle.
  2. Trade the vehicle in against a new vehicle purchase where any equity value left once the GFV is settled can be used as a deposit. 
  3. Return the vehicle with nothing more to pay (subject to condition and mileage terms in the agreement). Please read these carefully 
  • Fixed monthly payments 
  • Potentially lower monthly payments than an HP agreement 
  • Term of the agreement can be fixed to the term you wish to keep the vehicle 
  • Ownership is transferred to you once the agreement is fully paid 
  • This type of agreement is covered by the Consumer Credit Act 1974, this would allow:- 
    • Lump sum payments can be made during the term of the agreement 
  • Early settlement is possible if the balance of the agreement (including the GFV) is repaid 
  • The agreement is secured on your vehicle which means that if you fail to keep up repayments the vehicle could be repossessed 
  • If you put down a lower deposit it could mean a higher risk of negative equity if you settle early or want to change the vehicle before the end of your finance 

 

  • Due to depreciation it is possible that there will be no equity in the vehicle at the end of the term 

 

  • An excess mileage fee is payable at the end of the term if you exceed the agreed mileage parameters and wish to return the vehicle