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info@firstvehiclefinance.co.uk

Personal Contract Purchase advantages and disadvantages


Personal Contract Purchase (PCP) is a type of finance agreement for personal customers looking to fund a new 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 Optional Final Payment 
  • No depreciation concerns if you wish to walk away at the end 
  • Maintenance and servicing can be included 
  • Fixed Optional Final Payment when you first take out the contract 
  • Cost effective 


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 
  • You must have fully comprehensive vehicle insurance 
  • A charge can be made for damage to the vehicle (not fair wear & tear) 
  • A charge will be made for excess mileage if the contract mileage is exceeded 


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Contact us

Email : info@firstvehiclefinance.co.uk

Telephone : 01293 456 100

Company Address :
First Vehicle Finance Limited
Brockham House
Smallfield Road
Horley
Surrey
RH6 9AU

First Vehicle Finance Limited are a credit broker and not a lender, we are authorised and regulated by the Financial Conduct Authority. Registered No : 669990

Registered in England & Wales with company number : 05285260 | Data Protection No : Z9729803 | VAT No : 862 3889 84

Registered Office : The Cottage, 2 Castlefield Road, Reigate Surrey RH2 0SH

Disclaimer: All vehicle images and descriptions are for illustration and reference purposes only, all vehicle leases are subject to credit approval and subject to change at any time. E&OE.

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