TCF & Disclosure Notice

As part of our commitment to making your Asset funding experience as stress free as possible, we will be open and clear in our dealings with you.

Please ensure that you read through this notice carefully and make sure that it accurately reflects the conversations that take place throughout the course of your time with us. If you have any questions, concerns or if you do not understand any of the terms used in any agreements of documents addresses to you, please feel free to ask for assistance. This notice serves to inform you of how we provide our optional finance and Third party insurance services that can complement your asset funding acquisition. It is available in both paper and electronic versions and where you have chosen to receive a document via email, if you would subsequently like a paper copy sent, please ask us and this will be provided.

Automotive, Leisure and Motorcycle Finance options – Key summary

In order to help you with your Asset funding decision we have provided below a generic summary of typical examples of finance options together with their key features. Please note that depending upon your choice of asset and the relevant finance company not all these options may be available to you. Your finance agreement is provided to ensure that the product that you have chosen is right for your needs, please check your agreement carefully before signing.

The information below is for comparison purposes only and does not represent the terms of your chosen finance product and agreement.

Personal Contract Purchase (PCP) – fixed monthly payments with a choice of options at the end of the term. You will need to make a final lump sum payment at the end of the contract term if you wish to then own the vehicle outright including any Option to Purchase Fee. This type of contract is subject to mileage restrictions and vehicle condition terms.

Hire Purchase (HP) – at the end of the finance agreement, and as long as you have made all of the monthly repayments, including any Option to Purchase Fee, the car is yours.

Business & Personal Contact Hire (BCH/PCH) – with this type of agreement you lease a vehicle for an agreed period and cost. You will make monthly payments however will never be, or have the option to be the owner at the end of the fixed term. This type of contract is subject to mileage restrictions and vehicle condition terms. Payments are subject to VAT.

KEY DIFFERENCES

Churchill Emsworth Asset Finance Ltd is authorised and regulated by the Financial Conduct Authority for credit related activities. Registered on the Financial Services Register, FRN number: 964 492.

Limited Status Disclosure

The Financial Conduct Authority is the independent watchdog that regulates financial services. Please use this notice to decide if our services are right for you. All our finance products & services are optional. Churchill Emsworth Asset Finance Ltd is authorised and regulated by the Financial Conduct Authority for credit related regulated activities. The FCA Registration number is FRN 964 942.

You can check the above information on the FCA Register by visiting the FCA's website at www.register.fca.org.uk or by contacting the FCA contact centre on 0800 111678 or 0300 500 8082.

FINANCE PRODUCTS

Churchill Emsworth Asset Finance Ltd and its Appointed Representatives are a Credit Broker and not a Credit Lender. We are not Independent Financial Advisers. We can introduce you to a small number of carefully selected providers and finance products which may be suitable for your purchase. We act on the lenders behalf when making this introduction. We offer a non-advised service. We will provide you with sufficient information on our financial products, but it is for you to decide whether the finance product you choose is right for you. We cannot advise or provide any recommendation. The decision as to whether to enter into any credit agreement on the terms offered is yours.

COMMISSION DISCLOSURE

We typically receive a commission from the lenders, suppliers & partners we work with (either a fixed fee or a fixed percentage of the amount you borrow, or purchase price). The lenders & suppliers we work with could pay commission at different rates. Some lenders may also provide preferential rates to us for the funding of our vehicle stock and also provide financial support for our training and marketing. For your reassurance, the amount of commission we receive from a lender does not have an effect on the amount that you pay to that lender under your credit agreement.

If you would like us to disclose any potential commission, please make your request to your appointed Relationship Manager.

FEES

We do not charge you a fee for any of the financial services we offer.

VULNERABLE CUSTOMER STATEMENT

So that we can give you the right level of support throughout your credit application, please inform us if there anything we need to take into account that may affect your ability to fully understand the application.

USE OF YOUR DATA

By making an application for credit you give permission to share your personal information with one or more lenders and, or suppliers for the purpose of applying for credit on your behalf. The applications may be consecutive and will only take place if suitable terms cannot be achieved from previous applications.

In applying you confirm that:

• The information supplied on the credit proposal is true and correct. You agree that in the event that any false information has been given or an untrue statement made which the finance company relied on, they have the right to terminate the agreement.

• You authorise the lenders to make a credit search with one or more credit reference agencies, which will be recorded by those agencies. (Any lender may carry out more than one search).

• You are aware that credit scoring may have been used in the decision-making process.

• You agree that the lenders can, at any time, disclose details about the application, agreement and the conduct of the account to a licensed credit agency or introducing Dealer/Broker for the purposes of:

• Fraud

• Crime prevention

• Tracing customers

• any other legitimate purpose

• You acknowledge that the lenders may refuse to enter into an agreement without stating a reason.

WHAT TO DO IF YOU HAVE A COMPLAINT?

At Churchill Emsworth Asset Finance we are committed to providing you with a first-class service and effectively delivering the products and services you need. Even with the best of intentions, we know things can go wrong. So, if for any reason you are not entirely satisfied with any aspect of our service, please let us know as soon as possible. We’ll investigate the situation and where necessary, set about putting things right as quickly as possible. We may also take steps to avoid similar problems happening in the future. Your views are important to us and your feedback is key to improving the products and services we offer.

If you are not satisfied in the first instance, please contact your appointment Relationship Manager. If unavailable then you can telephone our head office on 01707 659 909 or email us on enquiries@ceaf.co.uk or write to us at: Compliance Manager, Churchill Emsworth Asset Finance LTD, of Falcon Gate, Shire Park, Welwyn Garden City, AL7 1TW

We will endeavour to resolve your complaint within 3 working days; if we are unable to achieve this to your satisfaction, we will then follow our internal complaints procedure. In both instances, if you are not entirely satisfied with the decision, you may be entitled to refer it to the Financial Ombudsman Service (FOS). www.financialombudsman.org.uk. The Ombudsman will only consider your complaint if you have followed the above procedure. Please note that a complaint referred to FOS must be made within six months of the date of our final response.

Hire Purchase (HP)

Hire Purchase is exactly what it sounds like. It is a hire agreement which gives you an option to own the car at the end of the agreement. The APR (Annual Percentage Rate) is set before the contract begins. The loan period is also fixed – you can choose any period between one to five years – and the finance agreement is secured against the car being bought, which means that lenders can be flexible in the terms and conditions they offer. You are the ‘registered keeper’ of the car and responsible for insuring and maintaining it, but the finance company remains the legal owner until the amount you borrowed has been fully repaid.

ADVANTAGES OF HIRE PURCHASE

• Quick and easy to arrange.

• Consumer Credit agreements are regulated (for personal agreements) , which means you will have rights and protections under law.

• A low deposit at the start of the agreement.

• Choice of payment terms of between 6,12,18, 24 & 36 months (0.5-3 years).

• Repayments fixed at the same amount throughout the agreement.

THINGS TO REMEMBER

• As Hire Purchase is a hire agreement with an option to buy at the end of it, the finance company owns the vehicle until you make the final payment which includes the Option to Purchase Fee

• Since you do not own the car until the end of the term, you cannot sell or modify it without the finance company’s permission

• The debt is secured against the car, therefore if you can’t meet the monthly payments, the car could be repossessed by the finance company to pay off the debt. Essentially, this reduces the risk for the lender as the finance is secured.

Personal Contract Purchase (PCP)

Personal Contract Purchase, or PCP, is a variation of a Hire Purchase agreement. The key difference is that the value of the car at the end of the contract is calculated at the start of the agreement and this value is deferred. This deferred sum is usually referred to as the Guaranteed Minimum Future Value (GMFV) or Optional Final Payment. It is based on several factors including how old the car will be at the end of the agreement and how many miles it is expected to have covered. The future value of the car is guaranteed by the lender so will not fluctuate. Deferring the GMFV to the end of the agreement in this way means that your regular monthly payments are lower than those on a comparable HP agreement over the same term. You are the ‘registered keeper’ of the car and responsible for insuring and maintaining it, but the finance company remains the legal owner until the amount you borrowed has been fully repaid.

AT THE END OF THE AGREEMENT

You will have three options:

1. You can either pay the guaranteed future value in full and own the car outright

2. Hand back the keys and walk away (subject to mileage and condition)

3. Trade the car in by using any existing equity (if the guaranteed future value is lower than the current market value of the car) as a deposit for a new finance agreement.

NB: If you want to hand the car back but have exceeded the forecast mileage you agreed at the start of the contract, you will need to pay an excess charge.

ADVANTAGES OF PERSONAL CONTRACT PURCHASE

• Lower monthly payments than Hire Purchase for a comparable car and term.

• A low deposit at the start of the agreement.

• Consumer Credit Agreements are regulated which means you have certain legal rights and protections.

• Flexibility at the end of the agreement on what you would like to do with the car.

• Fixed monthly payments throughout the term of the agreement.

THINGS TO REMEMBER

• PCPs could work out more expensive overall than a Hire Purchase agreement for an equivalent car, especially if you decide to enter into a second finance agreement to pay the deferred future value of the car at the end of the initial PCP agreement.

• Be careful how you estimate your annual mileage as you’ll be charged for each additional mile if you choose to hand the car back.

• If you return the car, it has to be in good condition as any damage may be charged to you by the finance company.

• The debt is secured against the car, therefore if you can’t meet the monthly payments, the car could be repossessed by the finance company to pay off the debt. Essentially, this reduces the risk for the lender as the finance is secured.

Personal Contract Hire (PCH)

Personal Contract Hire (PCH) involves leasing a car for an agreed period of time at a fixed monthly cost. For private individuals that means cost-effective, flexible motoring which is cheaper than buying a car. All servicing and maintenance can be provided – giving you peace-of-mind that everything is running smoothly with no unpredictable costs. It is a form of vehicle finance where the vehicle remains the property of the finance company, with the vehicle effectively hired out to an individual. At the end of your term, you simply return your vehicle to the leasing company and replace it with another one. The vehicle should be returned to the leasing company in a condition that meets the Fair wear and tear’ guidelines, otherwise charges may be incurred.

ADVANTAGES OF PERSONAL CONTRACT HIRE

• You choose the model of car that you want. All you do is pay one fixed monthly fee, keeping your costs low and predictable.

• Hassle-free motoring.

• Flexible payment structure – from 24 to 60 months.

• Running costs e.g., Maintenance and servicing can be included for easier budgeting.

• No risk of unexpected vehicle depreciation.

• The vehicle is not subject to Benefit in Kind tax.

• PCH gives you fixed cost motoring.

THINGS TO REMEMBER

• You do not have the option to own the car.

• All rentals include VAT; however, the user is unable to reclaim the VAT element or percentage thereof.

• Excess mileage charges may apply if you have exceeded the contracted mileage when you return the car.

• It can be expensive to terminate the contract early.

• Damage - Standard wear and tear is allowed, the vehicle should be returned to the leasing company in a condition that meets the ‘Fair wear and tear’ guidelines, otherwise charges may be incurred.

Business Contract Hire (PCH)

A Contract Hire is a method of financing a vehicle that is usually accessed by VAT-registered businesses and companies, however sole traders and partnerships can also take advantage of contract hire. It is a form of vehicle finance where the vehicle remains the property of the finance company, with the vehicle effectively hired out to a Business. Contract Hire involves leasing a car for an agreed period of time at a fixed monthly cost. For private businesses that means cost-effective, flexible motoring. All servicing and maintenance can be provided – giving you peace-of-mind that everything is running smoothly with no unpredictable costs. At the end of your term, you simply return your vehicle and replace it with another one.

ADVANTAGES OF CONTRACT HIRE

• VAT Payments - up to 50% of the VAT payments can be reclaimed. This is only applicable if your business is VAT registered.

• You choose the model of car that you want. All you do is pay one fixed monthly fee, keeping your costs low and predictable.

• Hassle-free motoring.

• Running costs e.g., Maintenance and servicing can be included for easier budgeting.

• No risk of unexpected vehicle depreciation.

• Free up capital - Business contract hire is an efficient way of running a fleet of vehicles. Rather than tying capital up in depreciating vehicles the company is able to invest in other areas of the business.

• Currently, vehicle leases do not have to be shown on a balance sheet, which may improve a company's liquidity ratio, gearing and return on assets.

• Flexibility - Running a fleet using business contract hire gives the company flexibility to respond to changing market conditions. Business contract hire agreements are typically between 24 and 60 months long, which allows the fleet to respond to changes to staffing requirements more efficiently than through alternative funding methods. This flexibility can also help business’ respond to changes in their Corporate Social Responsibility (CSR) guidelines, for example switching fleet vehicles to greener, more fuel-efficient models.

• Tax advantages - Some or all of the rental charge can be offset against taxable profits.

• Latest technology – Because your fleet will always comprise modern vehicles, your company could benefit from the latest fuel-saving developments in in-car technology.

THINGS TO REMEMBER

• No option to buy - Unlike some forms of business car leasing, there is no option to buy at the end of the contract.

• Beware of excess mileage - Have an accurate idea of the vehicle’s annual mileage requirement, underestimate and you will face additional charges if the agreed mileage limit is exceeded. Overestimate and you be paying a higher monthly fee than you actually need.

• Damage - Standard wear and tear is allowed, the vehicle should be returned to the leasing company in a condition that meets the ‘Fair wear and tear’ guidelines, otherwise charges may be incurred.

• Most business finance agreements are ‘unregulated’ which means the same protections are not available for.

Frequent Car Buyer Program

This is a bespoke Funding option created by the in-house team at CEAF VIP, this Funding method is unique and bespoke to only eligible clientele and as such falls within an unregulated protocol. To find out more about this service, please contact one of the VIP relationship managers.

KEY HIGHLIGHTS

• No reoccurring early settlement fees.

• No reoccurring Admin or Arrangement fees.

• Competitive APRs due to secured property guarantee.

• Only a soft credit check required.

• No requirement to re-apply for finance each time you change your vehicle, which can have an adverse effect on your credit rating.

• Allows for much easier and secure sale transaction of your existing car to both private and business buyers, as there is no finance to settle.

• Flexible amounts of borrowing available, determined by pre-approval.

• Completion turnaround times are largely decreased with ongoing purchases having the potential of being concluded in less than 24 hrs.