Acklam Car Centre are specialists in all aspects of vehicle funding and we understand the importance of finding the correct finance package for your new car. Over the years we have built several long standing relationships with leading finance houses enabling us to find the right deal to suit you. As each customers financial circumstances are different, our expert staff will take the time to listen to your requirements and come up with the finance package that is right for you. Please feel free to contact us to discuss your individual requirements.
Ideal for: People who want lower monthly repayments and prefer to change cars on a regular basis.
Personal Contract Purchase, or PCP, is a variation of a Hire Purchase agreement. The key difference is that the value of the car at the end of the contract is calculated at the start of the agreement and this value is deferred. This deferred sum is usually referred to as the Guaranteed Minimum Future Value (GMFV) and is based on a number of factors including how old the car will be at the end of the agreement and how many miles it is expected to have covered. The future value of the car is guaranteed by the lender so will not fluctuate. Deferring the GMFV to the end of the agreement in this way means that your regular monthly payments are lower than those on a comparable HP agreement over the same term.
A PCP agreement also gives you the flexibility to decide whether you would like to own the car outright at the end of the agreement by paying the deferred value (GMFV), or returning the car to the lender and entering into a new car finance agreement.
At the beginning of the agreement
Under a PCP agreement, you agree with the dealer the amount you want to borrow, less any deposit payment and the value of any car you are part-exchanging. Your dealer then submits your application for finance to the motor finance companies and, provided you pass their credit checks, the lender pays for the car on your behalf.
During the agreement, you pay the full price of the car plus interest, minus the guaranteed future value of the car. This means that the monthly payments are usually less than they would be under a comparable HP agreement over the same term.
At the end of the agreement; you will have three options:
Advantages of Personal Contract Purchase:
Things to remember:
All finance subject to terms and conditions*