A Day to Day Interest Plan or Daily Rate Plan follows the changes in LIBOR or Bank Base rate depending on the agreement. If interest rates rise or fall over the term of the contract, so does the interest payable. The monthly repayments consist of a fixed amount of capital repayment and a varying interest element charged in addition each month.
How it Works
- Pay a deposit and you then decide on your monthly term between 24 and 60 months.
- Decide if you want to opt for a final “balloon” payment.
- The term on this agreement is fixed. Your interest is calculated each month on the outstanding balance and is then paid along with your capital repayment.
- Minimum Interest Penalty Charges – For early settlement and you take advantage of lump sum payments during the agreement.
- Fixed Capital Payment - You can see each month how much your balance is coming down.
- Better car - lower payments than standard Hire Purchase allow you to purchase a better car for your budget.
- Flexibility - Not using your personal bank facility with a vehicle purchase gives you greater financial flexibility.
- Low Deposit – Doesn’t tie up valuable cash reserves.
- Save - If interest rates fall, so does your interest payment.
- No VAT - There are no VAT payments on Day To Day Variable Rate Plans.
Our Day to Day Interest Plans are available (subject to status and finance company underwriting criteria) exclusively to:
- Limited Companies/LLP
- Sole Traders/Self-Employed
- High Net Worth Individuals