Vehicles4work & Car Lease Shop
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Personal Contract Purchase

Personal Contract Purchase (PCP) is a type of vehicle finance agreement for personal customers looking to fund a new or used vehicle in a manageable way

The monthly payments are not subject to VAT, however if you do take out the optional service package then you will have to pay VAT on the service costs.

Advantages:

  • Low initial payment 
  • Fixed monthly payments 
  • You may be able to refinance the balloon payment 
  • No depreciation concerns if you wish to walk away at the end 
  • Maintenance and servicing can be included 
  • Fixed balloon or guaranteed future value to purchase payment when you first take out the contract 
  • Cost effective 
  • Can be used to finance new or used vehicles

Disadvantages:

  • You will have to make a decision at the end of the contract as to whether you wish to sell the vehicle, return it or Keep it - this is often seen as an advantage to most people. 
  • You must have fully comprehensive vehicle insurance

More Information on Personal Contract Purchase:

PCP is ideal for any individual who would like options at the end of their finance agreement. PCP customers make an initial payment when they first take out the contract, then pay fixed monthly payments and finally have an Optional Final Payment (OFP) at the end at the end of the contract which is also referred to as the GFV (Guaranteed Future Value).

You can trade in or sell your vehicle at a dealership and take another vehicle from them. If the trade in value is larger than the OFP you will be able to use the difference towards a deposit on a new vehicle. Or, you can simply return the vehicle to the funder, as long as you have not exceeded the mileage and the vehicle is in an appropriate condition for its age there will be no charge. Finally, you can keep the vehicle either by paying the OFP in full or you will find that most companies offer the opportunity to re-finance the OFP.

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Contact us

Email : sales@vehicles4work.com

Telephone : 01563 542820

Company Address :
Vehicles4work & Car Lease Shop
Car Lease Shop
38 Old Street
Riccarton
Kilmarnock
KA1 4DX

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WRK Solutions Ltd trading as Vehicles4work & Car Lease Shop are a credit broker and not a lender, we are authorised and regulated by the Financial Conduct Authority. Registered No : 673783

Company Registration Number: SC377900 | Data Protection No : ZA096949 | VAT No : 106370738

Registered Office : Bank Chambers 31 The Square Cumnock KA18 1AT

Disclaimer: All vehicle images and descriptions are for illustration and reference purposes only, all vehicle leases are subject to credit approval and subject to change at any time. E&OE.

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