Personal Contract Purchase (or PCP as it is commonly known) is a way of deferring the future value of your vehicle to reduce the monthly cost.
Customers decide on the deposit, term length and mileage they are likely to use. The guaranteed future value (GFV) of the vehicle is then calculated. The total on the road cost of the vehicle has the deposit and the GFV deducted from it, then customers spread the rest of their payments over the selected term.
Personal Contract Purchase allows for customers to choose at the end of their contract whether they want keep the vehicle permanently or not. At the end of the contract, customers can:
- Hand back the vehicle in the agreed condition and mileage with nothing more to pay
- Upgrade it to a newer or different model and starting a new PCP plan
- Pay the outstanding amount (equal the “Guaranteed Future Value” figure) and keep the car.
Advantages of buying Ssangyong on PCP
- Lower monthly payments than the hire purchase scheme
- The flexibility of choosing later whether to keep the vehicle or not
- The ability to upgrade and continue a new PCP plan on a brand new vehicle (without ever having to worry about MOT costs on a 36 month term)
Disadvantages of buying Ssangyong on PCP
Guaranteed Future Value is based upon an agreed annual mileage allowance and condition. The vehicle must be returned in good condition.
Whilst deferring a large chunk of the cost of the vehicle to the end of the contract is suitable for many of us, some customers (who expect to keep the car) find it easier to opt for the hire purchase scheme.
For more details on Personal Contract Purchase, see this page.