Personal Contract Purchase is a highly attractive and very popular way to own a new, nearly new or used car. It combines fixed monthly payments with exceptional flexibility at the end of the agreement.
Your cars Guaranteed Future Value is calculated (based on a pre-agreed mileage per year and the age of the car) and is deferred as a final payment.
At the end of your PCP agreement you have total control in deciding which of these choices suits you best;
1. Retain - Buy the car by paying an agreed minimum residual value (Final Payment)
2. Return - Return the car with nothing more to pay, subject to mileage and condition. (i.e. If car prices fall substantially and you find you have negative equity you hand the car back with nothing to pay!)
3. Renew - Part-exchange your car, any equity after the final payment is taken care of is yours to use as deposit or take as cash-back.
Why choose Personal Contract Purchase?
Fixed change cycle - know when your car is due for upgrading, with the flexibility to do this early if your circumstances change
Guarantee - A minimum Future Value for your car is guaranteed by the lender
Great Monthly payments - perfect for budgeting
You’re in control - Buy the car, just return it or part-exchange it, the choice is all yours!
Tax breaks - If you're opting out of a company scheme, your cash alternative isn't subject to company car tax
VAT free - no VAT on payments
Many thousands of UK consumers have already benefitted from PCPs and the vast majority are using PCP as their preferred method when it comes to changing for their next car!