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Personal Contract Purchase

Personal Contract Purchase (PCP) in Essex

Personal Contract Purchase (PCP) is a type of vehicle finance agreement for personal customers looking to fund a new or used vehicle in a manageable way. The monthly payments are not subject to VAT, however if you do take out the optional service package then you will have to pay VAT on the service costs.

Advantages:

  • Low initial payment
  • Fixed monthly payments
  • You may be able to refinance the balloon payment
  • No depreciation concerns if you wish to walk away at the end
  • Maintenance and servicing can be included
  • Fixed balloon or guaranteed future value to purchase payment when you first take out the contract
  • Cost effective
  • Can be used to finance new or used vehicles

Disadvantages:

  • You will have to make a decision at the end of the contract as to whether you wish to sell the vehicle, return it or Keep it - this is often seen as an advantage to most people.
  • You must have fully comprehensive vehicle insurance

More Information on Personal Contract Purchase:

PCP is ideal for any individual who would like options at the end of their finance agreement. PCP customers make an initial payment when they first take out the contract, then pay fixed monthly payments and finally have an Optional Final Payment (OFP) at the end at the end of the contract which is also referred to as the GFV (Guaranteed Future Value).

You can trade in or sell your vehicle at a dealership and take another vehicle from them. If the trade in value is larger than the OFP you will be able to use the difference towards a deposit on a new vehicle. Or, you can simply return the vehicle to the funder, as long as you have not exceeded the mileage and the vehicle is in an appropriate condition for its age there will be no charge. Finally, you can keep the vehicle either by paying the OFP in full or you will find that most companies offer the opportunity to re-finance the OFP.

After years of using the same leasing company I decided to contact Planet Leasing to quote on my new vehicle. The service I received was outstanding with a prompt quotation that saved over £100 a month off the price given by a main dealer. Planet Leasing made the ordering and the delivery of the car very simple and have exceeded my expectations on all accounts. I have gone on to recommend Planet Leasing to family and friends who have also received the same high level of service.

Dwight Breley

All vehicle images and car descriptions shown on this site are for illustration and reference purposes only as provided by CAP data, and are not necessarily an accurate visual representation of the vehicle on offer. Our platform is optimised to show the best available price for your chosen configuration, if you would like review other prices for similar deals, please contact a member of our sales team on 01702 410470.

Planet Leasing Limited is a credit broker and not a lender, and is authorised and regulated by the Financial Conduct Authority. Registered No : 688093. Planet Leasing Limited is an Appointed Representative of AutoProtect (MBI) Limited which is authorised and regulated by the Financial Conduct Authority for Insurance Mediation, their reference number is 312143. You can check this on the FCA Register by visiting the www.fca.org.uk or by contacting the FCA direct on 0300 500 8082.

Registered in England & Wales with company number: 06160177 | Data Protection No: Z9866952 | VAT No: 938 0368 07
Registered Office: 601 London Road, Westcliff-on-Sea, Essex, SS0 9PE

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