Personal Contract Purchase (PCP)
Personal Contract Hire (PCH)

Please feel free to contact one of our sales team who will gladly advise you on which option will best suit your personal requirements





 

PCP Explained:

Personal Contract Purchase (PCP) is another way of owning the car through monthly payments. However it differs significantly from hire purchase in two main ways. First you decide at the end of the deal if you want to own it. Second the finances of the deal are structured in a slightly more complex way. Here's how it works. You pay a deposit. Then you make fixed monthly payments for an agrees period. These payments are invariably far lower that those of hire purchase schemes. At the end of the deal you have three choices:
You make a final, substantially larger payment - often called a balloon payment - to own the car
You forget about the balloon payment and walk away with nothing to pay, provided the car meets pre-agreed condition and mileage limits.
You trade in the car for another. In this case you don't make the final balloon payment. Instead it is covered by the cars second hand value. If the car turns out to be worth more than the balloon payment you can put the extra money towards a new Personal Contract Purchase

PCH Explained:

Personal Contract Hire (PCH) gives the user a fixed equal monthly rental for a fixed contract term and mileage. At the end of the contract the vehicle is simply handed back. It should be noted that this is a contract and early termination can prove to be expensive.
This scheme is favoured by those who are given a cash for cars incentive or mileage allowance.
This scheme will also avoid benefit-in-kind taxation
Business Strategy Partners