Personal Contract Purchase
Personal Contract Purchase (PCP) enables an Individual to run a vehicle at a fixed monthly cost. Contract periods are available from 2 to 5 years. In most cases, the longer the lease term, the lower the cost of the monthly rental. The individual can vary their deposit amount and contract term to tailor their monthly budget.
All of our PCP agreements are Regulated contracts. This means that they are covered under the Consumer Credit Act (CCA 1974) and/or the Consumer Credit Directive (CCD 2010). Under the terms of this legislation, the customer can request a settlement figure at any point throughout the contract.
The monthly rental is determined by many factors, including the capital cost of the vehicle, the estimated resale (residual) value, the contract term, and the mileage allowance on the contract.
Features of Personal Purchase
- No depreciation risks
- Contract can be settled early
- Accurate monthly budgeting
- Fixed interest rate
- Low initial outlay
- Optional monthly maintenance packages
- No time consuming disposal issues
- Simple hand back process at the end of the contract term
Several options are available on a Personal Contract Purchase, to allow private individuals to accurately budget throughout the lease period. These include a maintenance option, which covers all servicing, routine maintenance and replacement tyres. For more information regarding additional products and services, visit our Maintenance page.
At the end of the contract period, the individual has 3 options:
1. Return the vehicle with nothing more to pay subject to mileage and condition (collection is usually free of charge).
2. Make the optional final payment, and take full ownership of the vehicle.
3. Allow contracthireuk.co.uk sell the vehicle on the open market. This could potentially release any available equity to form a deposit for a replacement vehicle.
The sales team at contracthireuk.co.uk understand and appreciate that each individuals requirements are different. Their experience ensures you are offered a package that provides the best solution for you.
For more information regarding Tax implications for both Companies and Employees, visit our Taxation pages.
To discuss your requirements in more detail, or if you have any queries regarding any of this information, please call us now on 01653 693834