Private Contract Purchase (PCP)
This is a product for private individuals buying new and used cars, mainly through franchised suppliers.
PCP is a car loan, where the finance company or manufacturer guarantee a future price on the car. This is often taken as 85-90% of CAP future price (which is industry data proivided by CAP which gives a scientific guesstimate as to the future trade price of precise models dependant on mileage) but as this is less than the car would be worth in the trade sometimes it doesn't make economic sense to hand the car back at this point as you should have value in it.
Also look out for the rates on this type of agreement as, apart from new cars on a manufacturer subsidised rate, this can be an expensive proposition. Much better to have a car loan or HP with a balloon payment which is much cheaper and you have control.
Be wary also as these agreements have mileage penaties and return conditions and many people have been stung for unnecessary repairs when handing the cars back or charged large excess mileage penalties where you may have gone over the contracted mileage allowed.
For advice and alternative quotes, do not hesitate to call us. GO ON..............PUT US TO THE TEST!
