A PCP is a popular finance agreement that has lower monthly payments because the guaranteed final payment of your vehicle defers a larger payment to the end of the finance agreement. In order to determine your vehicles guaranteed final payment, the age of the car and your annual mileage will be considered.
Having chosen your vehicle, budget, mileage, term and deposit, we can agree a monthly payment that is both fixed and affordable. Guaranteeing the future value allows you to reduce your monthly repayments.At the end of the agreement you have 3 options:
RENEW - Get a new car by part-exchanging yours, should there be any equity over and above the guaranteed final payment, you can use this as a deposit towards a new car
RETAIN - Keep the cars and pay any outstanding charges including the guaranteed final payment
RETURN - Return your car to the finance company, no further payment will be required if excess mileage and wear and tear conditions have been met. You may want to consider this option if the value of the car is less than the guaranteed final payment