Personal Contract Purchase
PCP is similar in many ways to PCH but with PCP the individual has the opportunity to buy the vehicle at the end of the term at a price agreed at the start of the contract.
PCP is similar in many ways to PCH but with PCP the individual has the opportunity to buy the vehicle at the end of the term at a price agreed at the start of the contract.
Like PCH, the discounted price of the vehicle, mileage, contract duration and predicted future value of the vehicle will be the basis for the monthly payments and final balloon.
At the end of the agreement the purchaser has the option to pay the balloon and take ownership of the vehicle or simply hand the car back to the provider.
Benefits of Personal Contract Purchase
- Low initial deposit & fixed monthly rentals
- No benefit in kind tax if used for company business
- Fixed payments
- Maintenance and road tax can be included
- You can select a car of your choice
- No depreciation or vehicle disposal to worry about
- Final payment is optional
