What happens at the end of a Personal Contract Purchase (PCP) contract?
Knowing what financial product you have utilised to use/own your car is essential. Due to the poor quality of information customers receive, we do get enquiries where there is still a total misunderstanding of what financial product is being offered/advertised. At CarLease UK we offer a number of products to personal and business lease customers including:
A PCP is an ownership-style product and is an alternative to the rental style contract hire method. A PCP quote should show the customer:
Unlike contract hire, where you return the car at the end of the contract, a PCP offers the customer an opportunity to pay the GFV to own the car, return the vehicle (subject to return standards) or sell the vehicle if there is an opportunity to benefit from equity (any additional money in addition to the settlement) in the vehicle. As such, this can be more flexible than contract hire. However, do note that not all contract hire deals are equally available on a PCP basis. Please also consider that not every PCP will result in an “equity” situation, as this will be subject to market forces – a customer should never be promised that their car will exceed the value of the GFV.
If you are considering a purchase-style agreement, do consider the car you are looking to procure as you need to consider what specification will be popular with future buyers – exterior colour, interior colour, additional factory specification etc
For more information on PCP simply get in touch with our help team or read more articles in our help and advice section, you can also browse our blog pages to learn more about the kinds of cars which customers choose regularly.
CarLease (UK) Ltd t/a CarLease UK, e-car lease and VanLease UK is Authorised and Regulated by the Financial
Conduct Authority – our Firm Reference Number (FRN) is 706617.
Carlease (UK) Ltd t/a CarLease UK, e-car lease, VanLease UK and School Minibus Leasing UK is a credit broker and not a lender and will introduce you to a limited number of finance providers which have been carefully selected by us - please note that we do not provide independent financial advice. The finance providers that we use may make payment to us if you elect to enter into an agreement with them. The amount we receive will affect what you pay for your vehicle. The commission received may or may not be capped in accordance with that finance company’s policy. We may also receive an extra amount based on how much business we provide to that finance company, the types of products you take from the finance company and the quality of our service. For Regulated Customers you can ask us about the payments we receive from the finance company so long as this is in good time before the agreement is made. Failure to maintain rentals may result in the vehicle being withdrawn (this may affect your credit).
All images on this website are for illustrative purposes only and may not reflect the actual vehicle which is delivered to you. All prices shown are subject to change at any time and are subject to credit status and vehicle availability.
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CarLease (UK) Ltd work alongside the select finance companies:
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