Buying A Car With A Personal Contract Purchase Loan
What is a PCP?
A PCP, or personal contract purchase loan, is a personal contract for private individuals. It allows you to set a contract term with monthly payments for your new car. At the end of the term you can either purchase the vehicle fully or give it back to the contact provider.
Costs of a PCP
The costs of a PCP depend on the car you are buying, and how much deposit you can afford to put down. It also depends on the length of the contract, as well as other factors like maintenance requirements. However, the length of the agreement will usually last from 24-42 months, during which time you pay a monthly cost as a 'rental' of the vehicle.
Guaranteed future value
One advantage of a PCP is that you will get a minimum guaranteed future value agreed, so that you know how much you will have to pay at the end of the loan term to buy the car outright. You can either pay the guaranteed value and own the car, hand it back without any payments, or use the guaranteed value towards another new car.
Cheaper than many other methods
Apart from flexibility, the main advantage of a PCP is that you have fixed monthly payments that are likely to be lower than other forms of auto finance. Also, if you get a PCP with maintenance included you will not have to worry about large repair costs like you might with a used car. Also, depreciation is lower because you have a guaranteed future value.
Losing the car
Perhaps the biggest disadvantage of a PCP is that during the contract term you do not actually own the car. You are simply leasing it from the provider, so if you should fail to make the payments the car can be taken away from you. Before taking out a PCP, make sure you can afford the repayments so that you will be able to keep the car you want.
Cheaper than a loan
Although PCP means you don't own the car during the contract term, it is much cheaper than a loan for financing a car. Even if you get a very low rate, you will pay back more and the depreciation will be higher. If you are looking to buy a car and you don't want to pay outright, then go for a PCP.
Related Tags: consolidation, debt, loans, compare, personal loans, uk, secured, apr
Peter Kenny is a writer for The Thrifty Scot, please visit us at Compare Personal Loans and Debt Consolidation Loans Visit http://www.thriftyscot.co.uk/Your Article Search Directory : Find in Articles
Recent articles in this category:
- What's In Your Credit Report?
IdentificationYour name, address, social security number, birthdate and previous and current employm
- Pros And Cons Of Low Purchase Rate Credit Cards
Low interest credit cards are outstanding until the time period runs out. Most of these offers promo
- Bad Credit Loan Scams
There are several bad credit loan scams out there. These are usually aimed at those that don't have
- Successful Credit Repair Methods
If you bad credit, you are not alone. Fact of the matter is there are tens of thousands in the count
- Auto Loans Bad Credit: Bad Credit Is Not An Obstacle Now
Now a days, people want their own Cars. Though there are Public Transport Systems, they do not watch
- Credit Card Services For Your Business
Co Branded Credit cards can be very beneficial for you if you have a business. These cards are onlin
- Will The Actual Natural Motion Endure Large Food? -- Horizon Milk
The natural food business may be going through major work day in energy in the past 10 years. Becaus
- Prices Of Dlp Lamp Alternative Parts - Dlp Bulbs
Since you will have to purchase a DLP> lamp each and every few years, it might be useful to know the
- Dlp Bulbs -- Facts About Dlp Lamp Replacement
With regards to technical breakthroughs there aren't many things that are more popular than tvs and
- Ways Which Anybody May Restore Their Very Own Credit Rating Easily - Credit Repair For Dummies
If you listen to a lot of the actual ads which are available regarding credit>, more than likely you
Most viewed articles in this category:
- Credit - Repair
To make the life more comfortable people purchase lots of things from clothing to cars and homes tha
- Helpful Tips For Using Low Interest Rate Credit Cards
People with good credit ratings often receive offers for low interest rate credit cards. A credit ca
- Benefits to Businesses Accepting Credit Cards
Many business owners report a sharp increase in profit when they begin accepting credit cards as a m
- How To Remove A Bankruptcy From Your Credit Report
Credit report repair can be a long, tedious process and one of the hardest items to get removed is a
- Putting Low Interest Rate Credit Cards To Work
If you have a solid credit rating, then you may receive offers for low interest rate credit cards. Y
- Credit Repair - Tips And Tricks That Work
When you apply for credit, your lender will request a credit report from a credit reporting agency.
- Bad Credit Debt Consolidation
No doubt there are numerous bad credit personal loans but hunting for a secured loan for bad credit
- Before You Buy
Check out the market in the area you want to buy. Find out what price houses are going for and
- Top 10 Keys To Creating A Good Credit Score
We know it can be unfair but credit is used for everything these days. Utility companies are even us
- Find Out How To Improve Your Credit Score
As surprising as this may sound, the vast majority of consumers don't know what their credit score i