| PERSONAL CONTRACTS
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Ideal for private individuals who want a cost effective and hassle free way of financing and maintaining their vehicle
Personal Contract Purchase or PCP is becoming more and more popular with people who previously purchased vehicles using the traditional Hire Purchase method, and with those employees who have been offered a cash alternative to their Company Car.
PCP enables you to enjoy the benefits of a new or nearly new car every 1-4 years for a low initial outlay and fixed monthly payments, thus offering you the most hassle-free way to drive the car of your choice.
Budgeting is made even easier by including all maintenance, servicing, repair costs, Road Fund Licence and breakdown service as required.
At the end of the contract, you can either return the vehicle with nothing more to pay, or pay a final 'balloon' payment and keep or sell the vehicle. This balloon payment is the guaranteed future value of the vehicle which is set at the outset of the contract. If your vehicle is worth more than this value, any excess can be used as a deposit for your next car.
Cash or Company Car? These are the options given to many employees by companies wishing to restructure their fleet management. By choosing the 'cash for car' option, you are able to avoid the benefit in kind taxation which would normally apply with a company car, and claim back business mileage from your employer.
Not only could you be driving the car of your choice, but you may even be financially better off. Check out your position on Company Car Tax |
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For Private Individuals who want minimum outlay, maximum cost control and no depreciation or disposal risks.
Personal Contract Hire, as with PCP, enables you to have a new car every 1 - 4 years for a low initial outlay and fixed monthly payments. This can, of course, include maintenance, servicing, repair costs and breakdown service if required.
For employees opting out of a company car scheme, the same advantages as with PCP would apply.
The main difference is that at the end of a personal contract hire agreement, you can simply hand the car back. There is no final balloon payment, no risk to you of depreciation, and no need to worry about disposing of the vehicle at the end of the term.
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