What is Personal Contract Purchase (PCP)?
PCP is a very popular way for individuals to use a car of choice whilst only paying off the depreciation value monthly, as opposed to paying for the whole vehicle.
At the end of such an agreement, you can decide to walk away from the contract with no re-sale or residual value worries, or you can purchase the vehicle outright at the end of the contract. The balance payable if you decide to purchase the vehicle outright can also be re-financed.
At Motor Contracts we completely analyse your requirements and tailor our offering to suit you, providing you with absolute transparency throughout the process, allowing you to make educated decisions that best work for you or your business.
Advantages
- Fixed prices - You know exactly what you have to pay each month, which can help you set and keep to a budget
- Initial down payment - Usually only a small deposit is required, typically lower than a Hire Purchase agreement
- Optional balloon payment determined at the outset based on the residual value. This allows a customer to take ownership of the vehicle at end of the contract term or return it to the leasing company
- If you prefer you can refinance the balloon payment at the end of the term
- Flexibility - For drivers looking to change their vehicles every two or three years, PCP provides an easy way to do so
- Maintenance packages - Most personal contract purchase agreements exclude maintenance, however we can put together a maintenance package for you on request (at extra cost).
- No depreciation concerns - It is not necessary to buy the car at the end of the term so you can still choose to walk away and without re-sale concerns
- Low monthly deposit and low monthly payments can give you access to more 'upmarket' or aspirational vehicles