Personal Contract Purchase (PCP)
Due to the flexibility and low monthly payments, PCP has rapidly become the most popular way in which to finance new cars. The customer pays an initial deposit, followed by a series of monthly payments and at the end of the term the customer then has the option to make a final lump sum payment in order to own the car, or to merely return the car with no further obligations.
Financing a vehicle in this way is particularly good if the customer has recently opted out of a company car scheme or intends to change their car at the end of the term. By repaying the difference between the sale price and the optional balloon payment the customer is only financing the depreciation of the car.
Benefits of PCP:
- No large deposit necessary.
- Reduced fixed monthly payments due to the deferred ‘balloon’ payment.
- An option to own the vehicle at the end of the contract.
- The option to refinance the balloon payment at the end of the contract.
Historically manufacturers tend to introduce price increases around the end of the summer. We would strongly advise our customers to place their orders early to protect themselves from any potential price increases and to ensure an early 58 registered delivery.
