Personal Contract Purchase (PCP)
PERSONAL CONTRACT PURCHASE (PCP)
WHAT IS PCP?
Keep your monthly repayments lower by deferring a significant proportion of the amount of credit to the final repayment at the end of the agreement. Agree an initial deposit, how many miles you are likely to travel each year and how long you want the agreement to run for and the dealer will then calculate the Guaranteed Future Value (GFV) of your vehicle and confirm your monthly repayment. The dealer will submit the finance application to us and subject to your application being approved; you can just drive your car away.
The options at the end of the agreement are:
(1) part exchange the vehicle subject to settlement of your existing finance agreement; new finance agreements are subject to status.
2) return the vehicle and not pay the Final Lump Sum Repayment. If the vehicle is in good condition and has not exceeded the agreed maximum mileage you will have nothing further to pay. (Further information on what is considered good condition can be found at blackhorse.co.uk/ goodconditionguide.) If the vehicle has exceeded the agreed maximum mileage a charge for excess mileage will apply.
3) pay the Final Lump Sum Repayment to own the vehicle.
HOW IT WORKS
- Borrow any amount from £1,000
- Available on New or Used Cars (Used up to 7 years old at the end of the agreement)
- Flexible Deposit Options – 0% deposit may be available subject to status
- Guaranteed Future Value
- Set repayments to suit your budget
- Set your annual mileage up to 24,000 miles a year. Your annual mileage will affect your monthly repayments and Guaranteed Future Value.
- 2 – 4 year terms
- Personal Contract Purchase is available to Limited Companies on a non regulated basis
- For used vehicles the maximum permitted vehicle mileage at the start of the agreement is 3,000 miles per month of age
WHAT YOU WILL PAY
WHAT YOU NEED TO KNOW
- Flexibility Set repayment periods from two to four years, then take the best option for you when you reach the end
- Ideal if: You like to drive the newest model You like to keep your options open You like to budget
- Lower repayments means you might be able to afford a newer car
- Newer model means lower maintenance costs
- Protection under the Consumer Credit Act Termination Rights and Protection under the Consumer Rights Act
- A significant proportion of the credit is deferred until the end of the agreement you should prepare for this if you want to own the car
- You do not own the vehicle until the final repayment including interest has been made
For more information or a finance quote, contact our Business Manager Dean today on 028 8225 1515