Personal Contract Purchase

Personal Contract Purchase is an extremely popular method of funding a new car favoured by individuals and drivers opting out of a company car scheme. It offers low fixed monthly repayments with a choice of flexible options at the end of the contract.

 

Your cars future value is calculated based on your annual mileage and offset to the end of the contract by means of a guaranteed future value, at the end of the contract you then decide to either:-

 

1) Buy the car by paying the agreed minimum future value

2) Part-exchange the vehicle for another

3) Pay the agreed minimum future value and sell the vehicle privately

4) Or, subject to mileage and condition, return the car with nothing more to pay

 

PCP is ideal for drivers opting out of a company car scheme. You use your company car allowance to fund your

 

PCP monthly payments without having to pay company car tax.

 

Key Benefits of Personal Contract Purchase

 

• Low risk - As minimum future value is guaranteed
• Low deposit
• Low fixed monthly payments
• Choice - Buy the car, part-exchange it or just return it
• A better car - lower payments could mean you can choose a better car
• No company car tax if opting out of a company car scheme
• VAT free - no VAT on payment