What is Personal Contract Purchase (PCP)
What it is? A purchase product where you agree to purchase a vehicle for a fixed instalment each month with an optional guaranteed final payment.
Who is it popular with? People who would like options at the end of their finance agreement.
How long does it last? Typically, 24 to 60 months.
Is it available with maintenance? Yes
You make an initial payment when you first take out your contract, followed by fixed monthly payments and a final instalment at the end of the contract.
You have a number of options as the end of the contract;
• Hand the car back and let the finance company dispose of the car.
• Purchase the car for the final payment as agreed in the contract and take ownership.
• Trade the vehicle in and use any equity towards your next car. You may have to pay the final instalment first to take title.
If the vehicle exceeds the contract mileage an excess mileage charge will apply.
It is your responsibility to maintain the vehicle in accordance with the manufacturer guidelines, additional maintenance packages are available.
You will be liable to pay for any excess damage that is on the vehicle at the end of contract that is outside of the BVRLA Fair Wear and Tear Guidelines.