Personal Contract Purchase, Solihull West Midlands
Personal Contract Purchase
Personal Contract Purchase (PCP) is an increasingly popular way of funding a vehicle. It will give you lower monthly repayments than a traditional loan or HP agreement as the cars final value is calculated and treated as the final payment.
The final payment is guaranteed by the finance company and takes into account the expected condition, mileage and age of the vehicle at the end of the contract.
For this reason it is often referred to as the Guaranteed Future Value.
Your deposit, term and annual mileage can be adjusted to suit your requirements.
PCP has some great features. Not only does it provide lower monthly repayments and the ability to settle at any time you also have 3 clear options at the end of the agreement.
Firstly you can pay the final payment and keep the car
Secondly should your car not be worth the amount of the final payment, you have the option to hand it back to the finance company with nothing more to pay. T&Cs do apply with regard to the vehicle's mileage and its condition.
Or finally, the most popular option is to part exchange your car and settle the agreement. Any excess over and above the final payment can be used as part of the deposit. You can choose to do this at any time during the agreement.
In summary, PCP gives you a great opportunity to either lower your monthly payments or purchase a more expensive vehicle when compared to a personal loan.
All this with the comfort of knowing your car will have a guaranteed future value.