Personal Contract Purchase
This is ideal if you want the flexibility to renew, return or buy your car after a period of time.
You pay a deposit (usually up to 40% of the value of the car), and decide over what length of time you want to repay the balance. This is normally 2, 3 or 4 years. An optional final payment
is worked out based on your predicted mileage each year which could be anything from 6,000 to 30,000.
At the end of your agreed time period, you have three choices:
- You can part exchange your car, using surplus value on it after you’ve paid the final payment as the deposit for a new one
- You can give it back with nothing further to pay
- You can make the final payment and keep it
If you decide to keep it you will need to make the final payment and the car becomes yours.