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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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Testimonials

Thank you for professional and efficient service in providing the Porsche Macan exactly as promised, on time and to specification.

Your service was greatly appreciated.

Regards

Philip Wildish

Philip Wildish

Dear Stuart,

Thank you for going the extra mile and getting the vehicle delivered as swift as possible. You are a credit to Total Motion, well done, keep up the good work and thanks again.

With Regards,

Ianto

Ianto Bellis

Stuart was absolutely brilliant, my first time leasing a vehicle, he explained everything really well and the transaction went like clockwork. Would recommend to anyone looking to lease. The most efficient company I've dealt with ever!

Nicky Smith

Amelia,

Thank you so much for organising a car for my fastidious neighbour and dealing with him in such a professional and patient manner- he was really impressed!

I also want to thank you for the professional and friendly way you have dealt with the contract for my own car which is due for delivery shortly.

Gail Siddall

Dear Marvin,

Thank you so much for your exceptional efforts to ensure that I received my car today. I know that it was a tall order but I am very pleased and all went according to plan today.

I know that people often don't seem to appreciate all the work that people put into these things but please believe me when I say that I am very, very grateful.

If you have a manager that you can pass this message on to, please do so - in this day and age people always forget to say when service is good.

Thank you so much.

Lia

Lia Copestake

Thank you for sorting out the new van! It drives like a ferrari!


Kevan

Kevan

Alex,

Thank you for managing to find a physical car with the exact specifications my wife wanted, something no other company could achieve. Also, for having patience with a very awkward and hard to please customer! Can't recommend this company highly enough! Fantastic from beginning to end.

Paul Sharpe

Byron was professional and knowledgeable throughout and nothing was too much trouble. Can't speak highly or recommend him enough!

Dave Parker

Stuart,

Thank you for a quick and easy order process. Sorted out in a day. My wife is very much looking forward to her new car.

Kind Regards,

Ian

Ian Johnson

Stuart,

Thank you for a quick and easy order process. Sorted out in a day. My wife is very much looking forward to her new car.

Kind Regards,

Ian

Ian Johnson

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