What Is Personal Contract Purchase (PCP)
A Personal Contract Purchase, sometimes referred to as a Personal Contract Plan, is really like a mix of standard hire purchase and personal contract hire, with the decision whether to buy the car or return it not having to be made straight away.
Using Personal Contract Purchase a new Vauxhall can be leased from the finance provider for a set period of time, after which a choice can be made between returning the car or making a lump sum payment and buying the car outright. Since a value will need to be determined for the vehicle at the end of the term an estimated mileage figure is required. Using this and the agreed PCP term the finance company will determine a Guaranteed Future Value for the vehicle and it is this which will be the amount to pay at the end should the car be purchased.
As with all car finance options a deposit is required, with a minimum and maximum deposit value normally being specified. The monthly payments are then made, with any additional charges being applied should the agreed mileage be exceeded, and the driver uses the car until the term expires.
At this point the vehicle will be assessed by the company providing the Personal Contract Purchase agreement to ensure it is as would be expected of a car of its age and the mileage is within the agreed limits. Assuming everything is as expected the car can then be bought for the guaranteed future value figure already agreed at the start of the term or simply handed back.
Benefits of Personal Contract Purchase (PCP)
Personal Contract Purchase has seen a massive growth in popularity over recent years, ever since it first came onto the market as a means of new car finance. With set monthly payments and the choice of options at the end of the term it provides great flexibility and peace of mind. Considering also the fact that the balloon payment at the end of the term reduces the monthly repayment figure it makes it an affordable way to drive a new Vauxhall.
Vauxhall Cars available on Personal Contract Purchase (PCP)
Vauxhall Vans available on Personal Contract Purchase (PCP)