PCP FAQ
Finance FAQs
1. What is Personal Contract Purchase?
Personal Contract Purchase (PCP) is a contract for private individuals, but with the benefits more generally associated with Contract Hire for the business user. PCP is often a favourite for the company car driver opting out of a company car scheme due to the excessive tax charges now imposed on company cars. Personal Contract Purchase provides a new or nearly new car for a set period of time, doing an agreed but flexible number of miles with the option to purchase at the end of the lease, at a fixed monthly cost.
Contract terms available are from 24 months to 60 months on all new cars and a large selection of cost saving nearly new cars and any annual mileage.
2. What is included in the contract?
With a Non-Maintenance contract, the vehicle is supplied with Road Tax for the full contract period. Other insurance cover is optional, including GAP and health/redundancy, if required. The customer is responsible for the maintenance and care of the vehicle. A Full-Maintenance package is also available, giving the most comprehensive cover currently available, ensuring complete, worry free motoring.
3. What's included in the Full Maintenance Contract?
The full maintenance package includes:
- Full Maintenance and Servicing Cover
- Tyres, (subject to fair wear and tear) plus exhausts and batteries
- Free car collection, clean and return for routine servicing
- Full RAC UK and European cover - (optional)
- Road Tax for the full lease period.
4. What is Gap Insurance?
Should the car be stolen or written off, the insurance payment may not cover the amount outstanding on your finance agreement. This is because insurance companies tend to make payments based on the current market value of the car excluding any finance arrangements.
GAP (Guaranteed Asset Protection) Insurance bridges the 'gap' between the insurance settlement and the outstanding finance figure to maximum value of £10,000.00
5. Who owns the car?
Ownership of the car remains with the finance company during the term of the contract. If you wish to own the car, the 'balloon payment' (known as the Guaranteed Future Value) stipulated in the contract must be settled and the car is yours. (The Guaranteed Future Value is quoted at the beginning of the contract).
If you do not wish to buy the car, then it can be returned to the finance company with no further commitment (with the exception of possible dehire damage and excess mileage charges - if applicable).
6. How much deposit is required?
Usually just 3 monthly rentals in advance, although lower/higher deposits can be considered subject to status.
7. Which cars are best for me?
It depends on your needs, your anticipated mileage, the discount offered by the manufacturer etc. An important factor is how much the car will be worth at the end of the contract and the amount of discount we receive from the vehicle manufacturer. We often have special promotions available, so keep a look out for our special offers.
8. Can I specify extras on the car of my choice?
We can supply all dealer and manufacturer fitted accessories. Some accessories improve the residual value, so the monthly payments may not increase as much as you expect. Let us quote you!!
9. Where will the car come from?
First Vehicle Finance can source the vehicle for you from the UK dealer network at full fleet discount prices. All vehicles are UK sourced with full manufacturers warranty unless otherwise stated. If however you have a preferred dealer, this can be arranged.
10. Where do I start - what do I need to do?
Please complete our website quote form to receive a quotation and application form. If you are happy with the figure quoted, complete the application form and submit it to us for credit underwriting. We then ask you to sign an order form for the car to confirm the details, monthly rental etc and we are ready to order the car on your behalf. The paperwork is then posted to you for completion and the car is delivered to any UK address of your choice.
11. How do I pay?
- Initial Rental is taken by Direct Debit shortly after delivery of the vehicle.
- Monthly payments are made by direct debit.
12. Do you offer payment protection?
Payment protection can be added to your lease for a small monthly charge. Our payment protection package protects against Redundancy, Unemployment, Resignation, Death, Maternity and Expatriation.
13. What about insurance?
The vehicle must be insured with a fully comprehensive motoring policy.
14. What happens at the end of the contract?
You can choose from the following:
- Purchase the vehicle for the price agreed at the outset (the Guaranteed Future Value)
- Arrange collection of the vehicle.
- We collect the vehicle and supply you with another new car of your choice
