Personal Contact Purchase (PCP)
A PCP agreement uses the guaranteed future value (GFV) of the vehicle as a final balloon payment so you benefit from lower monthly repayments compared to Hire Purchase. You will have selected your expected annual mileage (between 6,000 – 28,000 for cars and 3,000 – 10,000 for motorcycles). At the end of your agreement, you have three options – retain, return or replace the vehicle:
- Retain: you keep the vehicle by paying the balloon and option to purchase fee at the end.
- Return: you hand the vehicle back to us, so you don’t pay the final balloon payment.
- Replace: you part exchange the vehicle at a dealership to get a new vehicle.
