Vauxhall has launched its latest PCP range, separate from the Flexible Finance range, using GMAC UK as provider rather than Santander Consumer Finance.
Although called Vauxhall Flexible PCP, the product is separate from the 0% prime finance range which saw GMAC and Santander compete to provide for in 2012, and will be offered by Vauxhall Finance, provided by GMAC.
The scheme will offer deposit and nil-deposit options for PCP with a fixed APR of 2.9% on multiple models including the Mokka SUV and Adam, the first in a wave of 23 models to be launched in Europe in the next few years.
The Mokka will be offered at £209 a month with a £4,530 deposit and the Adam at £159 a month with a £1,514 deposit, both over 36-month terms.
In a company statement, the brand emphasised the short-term contracts would allow a greater scope fo consumers to change cars or upgrade to newer models and / or specifications.
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Duncan Aldred, chairman of Vauxhall, who has recently spoken of the value of finance options in UK retail and the brand’s emphasis of private purchases over fleet, said the "competitive" PCP offer would incentivise consumers to change models on the scheme.
Santander and GMAC
GMAC had provided finance for Flexible Finance, Vauxhall’s flagship prime retail offering, until the brand switched to using Santander in March 2012. In response, GMAC matched Santander’s rates and Vauxhall allowed its dealers to proposition consumers to either provider under the scheme.
The move was a particular surprise given the close ties between GMAC UK, captive finance provider to General Motors (GM) until its acquisition by Ally Financial, and Vauxhall, which also operates under the GM umbrella.
Since Santander and GMAC both began providing for Flexible Finance, Ally has had to sell its automotive finance operations to cover losses in its mortgage arm, with GMAC UK among many such operations reacquired by GM – in a deal to be finalised by the middle of this year.