New low-cost finance from Citroën Contract Motoring

Citroën’s in-house contract hire division has launched a range of new finance packages on both new and used vans.

Citroën Contract Motoring (CCM) has added four new schemes.

These are aimed at bringing down cost of ownership: DriveNow Elect3 Pro for LCVs; DriveNow Contract Hire Plus/DriveNow Business Lease Plus; Used LCV leasing; and a full range of CCM finance options on Ready to Run dual-fuel vans.

Elect3 Pro
This enables businesses to acquire a new Citroën van in an affordable, flexible package. The scheme keeps monthly payments to a minimum. You only have to finance the actual cost of the van, minus the deposit paid and the guaranteed future value (GFV). As depreciation is the major part of the cost of financing a vehicle, CCM provides a GFV based on the length of the agreement and mileage covered.

CCM provides interest rate support as part of the Elect3 Pro package to achieve a competitive figure. And CCM provides financial support to reduce the customer’s deposit. At the end of the agreed period, customers have the choice of part-exchanging the van for a new Citroën LCV; paying the GFV amount and thus owning the vehicle outright; or handing the van back with nothing to pay (subject to mileage and condition).

For additional financial security a ‘Plus’ option can now be added to any CCM Contract Hire or Finance Lease product.

If a vehicle is an insurance total loss, the customer has to settle the CCM agreement. However, the customer’s insurer may offer a settlement figure that is lower than the amount outstanding on the CCM rental agreement.

But if the Plus option has been selected, the difference between the vehicle’s market value at the time of loss and the agreement settlement figure is waived, up to a maximum of £7,500. This is more usually called ‘Gap’ insurance.

Used LCV leasing scheme
CCM has also now introduced a used LCV leasing scheme. This provides lower cost leasing on nearly-new Citroën vans. The vans for this scheme come from Citroën UK sources and are no more than 12 months old.

CCM is also now providing a full range of contract hire and leasing services for Citroën Ready to Run petrol/LPG dual fuel converted Nemo, Berlingo First and New Berlingo vans.

Nigel Walker, CCM’s national sales manager, commented: “Today, business van operators are facing difficult financial conditions. As one of the few contract hire companies which is not dependent on outside finance, CCM is best able to offer the range of tailored financial products to suit its customers' business needs.”