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Personal Contract Purchase
The advantages & disadvantages of Personal contract purchase
Need some help?
Personal Contract Purchase
The advantages & disadvantages of Personal contract purchase
PCP is similar to Hire Purchase and consists of paying an initial deposit, followed by monthly payments, however, unlike Hire Purchase there is a Guaranteed Minimum Future Value (GMFV) at the end of the agreement.
HOW DOES PCP WORK?
- Deposit
- Annual Mileage
- Term
- Guaranteed Minimum Future Value
options at the end
- Own the car outright, by pyaing the value set out at the start of the agreement, plus any option to purchase fee.
- End the agreement. Hand the vehicle back to the finance company *subject to mileage and condition.
- Part exchange the vehicle for a new car.
- Guaranteed Minimum Future Value
advantages
- small or no deposit
- fixed repayments to help with budgeting
- fixed interest rates
- secured against the vehicle, not you!
- 2-4 year terms to meet your budget
- no mileage restrictions
disadvantages
- the loan is secured against the vehicle. if you miss payments the vehicle may be repossessed.
- It is typically more expensive than a PCP agreement as you financing the full value of the vehicle instead of a proportion.
- Missing any payments could affect your credit score.
- 2-5 year terms to meet you budget
- no mileage restrictions
Car Finance That Takes You Places.
Quick Links
Get In Touch
Unit H14, Link 49, Boscombe Business Park, Gloucestershire, BS107SB
- Email: [email protected]
- Phone: 0117 235 8727
- Hours: Mon-Fri 9:00AM - 5:00PM
- Saturday 10:00AM - 2:00PM
- Sunday Closed
Car Finance That Takes You Places.
Long Barn 2, Folly Farm, Tickenham, Clevedon, BS21 6RY
- Email: [email protected]
- Phone: 0117 235 8727
- Hours: Mon-Fri 9:00AM - 5:00PM
- Saturday 10:00AM - 2:00PM
- Sunday Closed
Services
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Low Rate Car Finance Limited is authorised and regulated by the Financial Conduct Authority (FRN: 963856). We act as a credit broker not a lender. We can introduce you to a limited number of lenders who may be able to offer you finance facilities for your purchase. We will only introduce you to these lenders. We may receive a commission payment from the finance or hire provider if you decide to enter into an agreement with them. The nature of this commission is as follows: a fixed fee or a percentage of the amount financed. You can request for us to disclose the amount of any commission received. You may be able to obtain finance for your purchase from other lenders and you are encouraged to seek alternative quotations. If you would like to know how we handle complaints, please ask for a copy of our complaints handling process. You can also find information about referring a complaint to the Financial Ombudsman Service (FOS) at financial-ombudsman.org.uk.
“Where and when we need your consent" - There will be circumstances where we will only process your data if we have your consent to do so. For example, if you provide us with data that is classed as a special category of data such as health information, criminal records of convictions and offences, or allegations of criminal offences. We will only process this with your permission (unless we feel the processing is necessary to protect your vital interests or if the law allows us to do so). You have a right at any time to ask us to stop the processing of that specific data”.
Car Finance That Takes You Places.
Services
Quick Links
Get In Touch
Long Barn 2, Folly Farm, Tickenham, Clevedon, BS21 6RY
- Email: [email protected]
- Phone: 0117 235 8727
- Hours: Mon-Fri 9:00AM - 5:00PM
- Saturday 10:00AM - 2:00PM
- Sunday Closed
Low Rate Car Finance Limited is authorised and regulated by the Financial Conduct Authority (FRN: 963856). We act as a credit broker not a lender. We can introduce you to a limited number of lenders who may be able to offer you finance facilities for your purchase. We will only introduce you to these lenders. We may receive a commission payment from the finance or hire provider if you decide to enter into an agreement with them. The nature of this commission is as follows: a fixed fee or a percentage of the amount financed. You can request for us to disclose the amount of any commission received. You may be able to obtain finance for your purchase from other lenders and you are encouraged to seek alternative quotations. If you would like to know how we handle complaints, please ask for a copy of our complaints handling process. You can also find information about referring a complaint to the Financial Ombudsman Service (FOS) at financial-ombudsman.org.uk.
“Where and when we need your consent" - There will be circumstances where we will only process your data if we have your consent to do so. For example, if you provide us with data that is classed as a special category of data such as health information, criminal records of convictions and offences, or allegations of criminal offences. We will only process this with your permission (unless we feel the processing is necessary to protect your vital interests or if the law allows us to do so). You have a right at any time to ask us to stop the processing of that specific data”.
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