PCP (personal contact purchase)
How do PCP agreements work?
Firstly you choose the right vehicle for you then you will make three decisions that will affect your monthly repayments
Your deposit – how much money you want to pay upfront
Your repayment period – the length of the contract
Your estimated annual mileage
Once these have been decided your monthly payments can be calculated and GFV (guaranteed future value / final optional payment)
The term you are agreeing to can vary from 24 to 48 months on a personal contract purchase with a final optional payment on the 49th month as explained in the finance agreement (please keep the customer copy for your own records)
HP (hire purchase)
HP or Hire Purchase agreements enable customers to purchase their vehicle, without getting weighed down upfront with the total cost of the car. Customers can break down the cost into a deposit and manageable monthly payments. At the end of the contract, the vehicle belongs to the customer.
The term can vary from 24 months to 60
months and the vehicle will be paid off completely over the term agreed.
If you do wish to come out of your vehicle prior to the end of the term there are options available.