A popular method of financing your car, pay monthly with the option to buy the vehicle at the end of the agreement.
PCP allows you to take out finance for a new or used car on fixed monthly payments with numerous options at the end of the contract. At the start of the contract we will work with you what terms of the agreement including length of agreement and annual mileage. A vehicle's value decreases with age, usage and damage - to cover the depreciation of the car a Guaranteed Future Value (GFV) is estimated. The GFV is what the cars expected value will be once your PCP contract ends.
The monthly payments are therefore calculated to cover the depreciation cost for the car from when you take control of it to when you hand it back. More annual mileage increases the monthly costs as the GFV of the vehicle will decrease for every extra mile on the clock.
Once your monthly payments are finished, you’ll have three options:
Pay the GFV 'balloon payment' and keep the car
Hand the car back with no further payments
Part exchange the vehicle for a new vehicle lease
A Personal Contract Purchase ownership is designed again for the private motorist method of funding that allows you to run your own car on similar basis as company contract without having pay tax.
To be eligible for contract hire leasing on a vehicle you must be at least 18 years of age with a full UK driving licences. A decent credit rating is also required for all finance agreements.
At the end of the PCP agreement you have three options; pay the GFV 'balloon payment' and keep the car, exchange the car for a new vehicle or hand the vehicle back to the leasing provider with no further obligations on the vehicle. If you choose the hand the vehicle back and have exceeded the agreed annual mileage you will be liable to pay for each mile over the agreed total. The condition of the vehicle will be assessed according to the BVRLA (British Vehicle Rental and Leasing Association) Fair Wear and Tear guidelines. Any damage outside the BVRLA guides may be subject to end-of-lease penalty charges.
Contact one of our Chorley Group dealerships today to learn more about Personal Contract Purchase and other finance options available.
PCP Finance agreements may look complicated at first glance, but they are one of the easiest and straight forward ways of financing your new car with more decisions available at the end of the deal.
|Cash Price||£16,471.61||The price to buy the vehicle outright without finance|
|Customer Deposit||£199.00||The upfront deposit cost the customer pays at the start of the contract.|
|Finance Deposit Contribution||£3,250.00||The deposit contribution from the manufacturer/Chorley Group. This is essentially the amount discounted off the original deposit cost.|
|Total Deposit||£3,449.00||The customer deposit and the deposit contribution added together.|
|48 Monthly Payments of||£199.99||The length of the contract and the agreed fixed monthly payments for the duration of the agreement.|
|Amount Financed||£13,022.61||The amount of finance you will receive to cover the costs of the vehicle, paid back through the monthly payments.|
|Final Optional Payment (GFV)||£5,320.53||This the predicted future value of the vehicle once you reach the end of the contract. When the term is up, this is how much it will cost to buy and keep the vehicle. It is often referred to as a 'balloon payment'.|
|Total Amount Payable||£18,321.53||The total amount paid to keep the car on the PCP contract. The total deposit, all the monthly payments and the GFV added together.|
|Annual Mileage||6,000||The amount of miles you can use the vehicle for per year. The annual mileage is decided at the start of the contract. Mileage exceeding the agreed amount will result in additional charges at the end of the contract.|