Personal Contract Purchase

Personal Contract Purchase

For personal users, with high value cars that would like the option to purchase their vehicles,but don't want any depreciation risks. Can be known as personal car finance or PCP this is a conditional sale agreement, structured as the user contracting to purchase the vehicle over a set period of time. It typically incorporates full maintenance. There is usually a final balloon payment (i.e. a single large final payment), after which legal ownership passes to the user. In practice most users do not make the final payment, opting instead to return the vehicle to the finance company, thereby avoiding the burden of disposal. The repayment figures and maintenance element are based on time and mileage. Like other purchasing schemes the vehicle is purchased exclusive of VAT and repayments do not carry VAT accept for the maintenance element if taken of which 100% is recoverable.

Key Benefits

  • Low deposit. 
  • No mileage restrictions, although you will end up paying for the depreciation for the miles travelled. 
  • Allows you to own the vehicle.

For anyone thinking about contract hiring a car, it's very important to understand what contract hire is — and what it is not — and how it works and if you have any questions no matter how small just give us a call.

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Disclaimer: All vehicle images and descriptions are for illustration and reference purposes only, all vehicle leases are subject to credit approval and subject to change at any time. E&OE.

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