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Thread: Anybody got/know PCP Personal contract ?

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    Regular Member shan's Avatar
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    Default Anybody got/know PCP Personal contract ?

    I have been looking into this to possibly get myself into a brand new car and try and avoid the huge deprecation we all suffer.

    I've found some info on the PCP subject IE. 3+36.

    I have never used this method to own a car.

    Do you pay for the servicing yourself on top of the monthly payment ?
    Do they guarantee the car's value it 3 years "so you know you are never going to be in negative equity on the car" ?

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    Don't think you own the car with PCP. I've found this explanation which may help.

    Personal Contract Purchase (PCP)

    You may be familiar with PCPs by various manufacturers' names, such as Ford Options, Nissan Preferences or BMW Select. They all work in the same way and are perfect if you plan to change cars regularly or if you want cheap monthly payments.

    A PCP involves the payment of a sizeable deposit and then a number of low monthly payments. At the end of the finance agreement, there are a number of options depending on whether the customer wants to carry on or end the agreement:


    • Pay a balloon payment and keep the car
    • Hand the car back and pay nothing
    • Put the car down as the deposit on your next vehicle

    The size of the balloon payment is determined at the outset of the agreement, and is taken into account when the original deposit and monthly payments are calculated.

    The car will have a guaranteed future value. This is the calculated value of the car at the end of the agreement and it is taken into account when calculating monthly payments.

    PCPs don't suit everyone's needs, however. The car belongs to the finance company until the deal is completed and there are penalties for early settlement. The car must be kept in good condition during the agreement - any damage or excess mileage will be taken from the final value of the vehicle.

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    Regular Member pscocoa's Avatar
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    You need to shop around for the best deals on this and it can be confusing - for example - if you are classed as working for a partner company eg police - there is a partners programme that gives discounts to the mfrs price and so gives the deal a boost.

    You do not own the car until or unless you pay the final amount of GFV - guaranteed future value (or guaranteed residual value). They also mess with the intererst rates for different periods - I did one for my daughter some years ago. Fiesta cost about £10k with options and on one finance pack they valued car at £2.7 k after 30 months which was very distorted and we snapped their hands off as payments were also quite low. so bought car at £2.7k after 30 months and payments were £160 for 30 months. It was just a quirk of #Ford deals at the time.

    You give the car back at the end unless you pay for it - they are not obliged to give you the residual value.

    Do not forget the VAT - the advertised deals quite often do not include VAT and say business users only.

    I would ask to see a VX business manager but do check if you are classed as "a partner" for the discounts

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