Finance Q&A - Finance Options

What is a finance deposit allowance?

I've come across a car that I like and noticed that within the finance breakdown there was something called a finance deposit allowance, what is it and how does it work?

Julia

Answer from the Stoneacre finance team:

Finance deposit allowance essentially gives you a discount when purchasing a car on Hire Purchase (HP) and Personal Contract Purchase (PCP) finance agreements. 

It’s likely, you’ve seen the phrase ‘manufacturer deposit contribution’, this means that you will need to pay less of your deposit due to a chunk that’s already covered by either manufacturers or dealerships. 

These deals are great and typically come with new car offers. You might be wondering, what’s the catch? Finance deposit allowance can be offered due to certain car sales targets that need to be hit and so dealerships provide an incentive to buy those cars with superb deals. 

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