A flexible purchase option that defers part of the purchase cost to the end of the agreement. It offers lower monthly payments than traditional finance plans by having a final optional payment, and is particularly appropriate for customers who prefer to change their cars every 2 or 3 years.
At the end of the contract you have the freedom of:
- Owning the car, by paying the final payment
- Handing the vehicle back, without incurring further cost (subject to fulfilling the terms of the contract, and by paying a option to purchase at the start of contract (normally around £150)
- Part exchange you car for a new model, using any difference between the guaranteed final payments and the trade in value.
The benefits of personal contract purchase
- Affordable fixed monthly payment
- You can often enjoy a better vehicle or specification than you may have considered, due to the structure of the repayments
- Guaranteed final payment
- Minimum value of vehicle set at outset
- Payments not subject to VAT