Personal Contract Purchase (PCP) is becoming more and more popular. And there are some very good reasons for this. PCP is also growing as a popular choice of funding for new and used cars - this segment has also recently grown in quite some numbers.
When you are comparing PCP to PCH, it may seem a little daunting, as with both agreements, you can hand the car back at the end.
Chris Mountford, CEO of All Vehicle Contracts explains;
"With the flexibility that PCP offers it is worth considering as a win-win finance option for your next car - some people see it as a real no-brainer."
Personal Contract Purchase - PCP pros and Cons
- PCP gives you flexibility and the ability to benefit from the vehicle's equity at the end of the contract
- PCP also gives you a fixed monthly payment (like PCH) but at the end of the contract, you can pay a final end value and buy the car at a pre-fixed amount that is designed to leave you in an equity status if you have not exceeded the mileage or damaged the vehicle
- If you do not want to buy the car, you don't have to as you can give it back
- If your car is worth more than the end value figure, you can also sell it and keep the difference or you can use it in part exchange for your next vehicle
- By opting for a PCP with AVC, you will often get a great price we will have negotiated excellent terms with the supplying manufacturer and/or dealer
- If you go over the mileage restrictions within your contract, you can find yourself with an excess mileage bill and there may not be enough equity left to sell the vehicle and clear the final figure (due to the extra mileage that you have driven during this time devaluing your car beyond the initial estimation) - however, you can choose to buy the vehicle to mitigate these costs including damage
- If your car is returned in a poor condition, you may be charged by the finance company if you don't decide to take it on at the end of the contract
Browse our website for online PCP and PCH quotations or if you would like to speak to one of our dedicated team, call 01902 353393. You can also enquire and order online from the vehicle quotation page or request a free of charge call back.
All Vehicle Contracts Ltd Published: Apr 12 2018