Personal Contract Purchase / Contract Purchase
Personal Contract Purchase / Contract Purchase are available to
private individuals or Sole Traders, Partnerships and Ltd Companies
who do not wish the vehicle to be paid from the company. It is
taking over popularity from the traditional Hire Purchase method of
vehicle finance. Company car drivers use this method to opt out of
their company car scheme. It is hassle free, with a fixed budgeted
motoring plan.
The initial payment, term, mileage and maintenance package (if
required) can all be tailored to suit your needs.
An initial payment is made (usually equivalent to 3 monthly payments
instead of your usual 10%/20% deposit) followed by a monthly payment
up to the agreed term.
At the end of the contract you have three options: - 1. The vehicle
is simply collected from your designated UK mainland address. 2. You
can part exchange the vehicle if the vehicles value is more than the
guaranteed future value. 3. You can keep the vehicle and just simply
pay the guaranteed future value.
Key Points to Remember:-
- 1. Road Fund Licence is not included for the duration of
the contract agreement.
- 2. The contract is agreed from the start to suit your
requirements therefore making budget planning easier. If taking
the maintenance option you don’t have to worry about the cost
when you car needs servicing, etc.
- 3. You don’t have to worry about depreciation or part
exchange hassles as the vehicle is simply collected at the end
of the contract unless you have equity in the vehicle.
- 4. Easy to early terminate. You can just request a
settlement figure (the calculation varies from funder to funder
depending if they take into consideration the residual value).
Once paid the vehicle is yours.
- 5. An inspection is conducted on collection if you decide to
return the vehicle. If your have exceed your mileage or there is
any damage (under BVRLA fair wear and tear conditions) you will
have to pay for it.