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Personal Contract Purchase

A personal contract purchase agreement is an ideal way of providing a car leasing agreement for the private or individual consumer. In a personal contract purchase agreement the monthly costs of the car finance are calculated by using the purchase price of the vehicle, the proposed duration of the personal contract purchase agreement, and the projected annual mileage. From this information a calculation is made of the guaranteed future value of the vehicle at the end of the personal contract purchase contract – often known as the balloon figure – and also the monthly payments. The end user has the option to include the service and maintenance within the monthly payments, if desired, and also has the option to purchase the vehicle at the end of the personal contract purchase agreement for the guaranteed future value or balloon payment.

Personal Contract Purchase Agreements

Personal contract purchase agreements enable the end user to budget for their monthly and annual motoring costs – the road fund licence will always be included for the first year of the personal contract purchase and with some funders is included for the life of the contract. Additionally the vehicle taken on a personal contract purchase will also benefit from the full manufacturers warranty terms, which is never less than 12 month and more often 36 months, and also the manufacturers breakdown and road-side assistance cover (again, never less than 12 months).

A personal contract purchase agreement, like a personal contract hire one, is ideal for the individual who receives a monthly car allowance from an employer, as the allowance can cover all or part of the monthly car payments – with any shortfall being made up by the end user. At the end of the personal contract purchase agreement the end user can either purchase the vehicle (see above), return it and start again with a new vehicle on a new personal contract purchase agreement or hand the car back and “walk away”.

Every vehicle that carleasinguk.com supplies is sourced from our UK national franchised dealer network and is delivered to the end user’s home address or work place. We are able to arrange collection at the end of the personal contract purchase agreement, and this collection can be timed to co-incide with the delivery of the new vehicle taken on a new personal contract purchase agreement, if required.

Each client taking a personal contract purchase agreement will be looked after by their own dedicated account manager and throughout the life of the contract every personal contract purchase client has the services of our Customer Services team to answer any queries that may arise. A personal contract purchase agreement thus enables the private user to drive the car of their choice at a price they can afford.

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