A Personal Contract Purchase (also known as PCP) is designed to give you more options. Choosing a Personal Contract Purchase (PCP) to finance your vehicle can lower your monthly payments you'll make on the agreement. It's a particularly popular choice with business drivers who aren't part of a company car scheme.
Many people choose a personal contract purchase agreement as it helps them keep their monthly payments down and it suits their budget. PCP schemes are also very popular with people who have opted out of a company car scheme preferring instead to take a car allowance as part of their job.
Your deposit amount, monthly payments, predicted annual mileage and final payment can all be adjusted. The final amount, known as the Guaranteed Minimum Future Value of the vehicle or as a balloon payment is calculated based on the average industry value of the model at the end of the agreement.
As the monthly amounts on a PCP are usually lower than with other plans, you can easily make the term shorter or go for a higher specification model for the same cost. It's also simple to work out an agreement that suits your driving needs and your budget
The final payment amount is often adjusted downwards to take the depreciation of the vehicle into account. This is done to make sure you have positive equity at the end of the agreement to purchase your next car. In addition, the payment is guaranteed by the finance company, this advantage is unique to a PCP. Should the car depreciate more quickly than you expected, you can return it without any extra charges.
It's possible to pay off a PCP agreement early if you wish. At the end of the term, you have the option of keeping the vehicle or using it in part exchange for another model. Shorter PCP terms give you the flexibility to try out a new car more frequently and agreements can generally last for between 18 and 42 months.
Please get in touch with Wilsons to select a new vehicle and to learn more about the PCP options available at our dealership. As PCP agreements can only be chosen from dealers, and aren’t on price comparison websites, you won’t find these offers anywhere else.