Personal Contract Purchase (PCP)

Read why a PCP could be the ideal way for you to buy a new or used Peugeot from Wilsons.

A Personal Contract Purchase, also known as PCP, gives you more options and can lower your monthly payments. It's especially popular with business drivers who have opted out of a company car scheme, preferring instead to take a car allowance.

As the monthly amounts on a PCP are usually lower than with other plans, you can choose to either pay over a shorter term, or go for the same cost and get a higher specification model.

PCP gives you more control too. You can choose to adjust the deposit amount, monthly payments, predicted annual mileage and the final payment to suit you. The final amount, known as the Guaranteed Minimum Future Value of the vehicle, also called a balloon payment, is calculated based on the average industry value of the model at the end of the agreement.

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.

You can pay off a PCP agreement early if you wish – you have the option to keep your vehicle or use 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.

Personal Contract Purchase Benefits

  • You're able to update your car more frequently
  • You're able to afford a nicer car for a lower fixed monthly payment over a shorter term
  • Guaranteed future value eliminates risk of negative equity and protects against depreciation
  • Flexible options at the end of the agreement to fit in with your personal circumstances
  • Ability to settle the agreement early and receive a rebate on interest charges

    How Personal Contract Purchase works

    • Choose a deposit to suit your budget
    • Select the length of your agreement usually between 18 – 42 months
    • Make your monthly payments. At the end of the agreement choose one of three options:
    • Pay the optional final payment
    • Hand the car back to finance company and make no further payments (subject to condition of vehicle)
    • Part exchange the car for a new one

    Contact Wilsons to find out more or to apply…

    PCP agreements are only available through dealers like Wilsons. You will not find PCP on price comparison websites. CONTACT WILSONS TODAY on 0844 244 7100 or enquire today.