Personal Contract Purchase

Personal Contract Purchase (PCP)


Personal Contract Purchase (PCP) is a popular choice both for private drivers and employees who opt out of a company car scheme to take the cash alternative.

BENEFITS

  • No hidden costs
  • Enjoy a new car every two or three years
  • Low initial deposit
  • Fixed interest rates for duration of contract
  • Fixed cost motoring for duration of contract simplifies budgeting
  • Reduced monthly payments due to deferred guaranteed future value (GFV or balloon payment) agreed at the start of the contract
  • Contract length and mileage tailored to your specific requirements
  • Maintenance and breakdown options available, spreading the cost
  • Rental, plus any maintenance package, covered by payments throughout contract
  • Avoids over-the-top company car tax payments.
  • No risk of negative equity; balloon payment amount guaranteed at start of contract.
  • Monthly payments not subject to VAT, only service costs of a maintenance package attract VAT.
  • GAP insurance and early termination insurance available
  • The chance to own the car at end of your contract, or to return it.

HOW IT WORKS

PCP, or Personal Contract Purchase, can be funded from your company car or mileage reclaim allowance. You choose the car, the deposit, for how long you want the contract to run and the mileage you intend to do. Your payments effectively cover the vehicle’s estimated depreciation and, in return, you enjoy fixed-cost motoring for the term of the contract.

Your car can be brand-new or pre-owned. If the latter it cannot exceed 48 months old at the end of the contract. So if the car were six months old the maximum contract length would be 42 months; a 12-month-old car could only be financed over a 36-month period and so on to a maximum of 24-months old with a maximum mileage of 24,000 miles.

At the end of the contract you have a choice either to buy the car outright for an agreed lump sum – Guaranteed Final Value (GVF) or balloon payment, or to hand the vehicle back to the lender and walk away with absolutely no further obligation.

PCP enables you to get the brand-new (or used) car that you probably thought was beyond your reach, enjoy significant tax benefits, and combine all your motoring expenses into one affordable monthly payment.

Our fleet purchasing power means we can source your vehicle of choice on exceptionally competitive terms. After, typically 14 days, we deliver your car free of charge to your door.

IS PCP RIGHT FOR ME? CONSIDERATIONS:

  • For individuals only; businesses are not eligible for this scheme.
  • Excess mileage costs may apply.
  • Repair of any damage beyond fair wear and tear is recharged to you.
  • The better the overall condition of your car, the higher the chance of your vehicle being worth more than the GFV, giving you the opportunity to recoup as much money as possible. You receive a detailed set of terms and conditions at the beginning of your contract.
  • When at least one-third of total amount payable has been made, the car cannot be repossessed without a court order.


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