Pcp car leasing

What is PCP leasing? Is a PCP deal more suitable than leasing? A PCP leasing agreement is simple and offers great flexibility to the customer.

It can include a comprehensive maintenance package covering things such as tyre replacement, regular services and breakdown recovery. The length of a PCP is usually somewhere between and years.

Personal contract purchase (PCP) is a vehicle finance agreement available to individuals (i.e. not businesses).

After an a initial deposit and a series of monthly payments which effectively cover the vehicle’s depreciation, this type of lease gives you the option to purchase the vehicle or return it to the finance company at the end of the agreement. By leasing a car, you’re essentially renting it for a long period, typically two to four years but some lease providers offer shorter and longer terms. When the lease ends, the car goes back to the provider.

You may see the term PCH. A personal contract purchase (PCP) is the most popular way of financing a car. The repayments are based on part of the value of the vehicle. The finance company guarantees the minimum the vehicle will be worth at the end of the agreement.

This is known as the Guaranteed Minimum Future Value (GMFV) or Optional Final Payment (OFP).

If you do opt to keep the car, PCP is generally more expensive than hire purchase. PCH personal leasing is the simplest way of getting behind the wheel of a brand new car. If you like keeping your cars for a long time, PCP and HP deals are usually better value.

As car leasing specialists we are here to help you get behind the wheel of a brand new car, hours a day, seven days a week. Essentially PCP is like a loan to help you purchase your car, however unlike a Personal Loan you won’t be paying off the full value of the car unless you decide to keep the vehicle.

Car leasing means you rent your choice of vehicle for a fixed length of time. At the end of the contract, you return the car. With PCP, you will make monthly instalments and then have the option to buy the car when your agreement has finished for an additional cost.

PCP versus leasing : the differences. Here’s a summary of the big differences between leasing and PCP : Right to own With a PCP deal, you have the right to buy your car for a pre-determined amount at the end of the contract. With personal leasing, you must hand.

But if you do like changing your car every two to three years, then leasing is a wise choice. The best car leasing deals from our sister website CarZing. How does leasing work?

With a car lease agreement, simply return your car in good condition at the end of your lease and choose a brand new one. With car leasing, you can drive a brand new car for less than you think, and benefit from fixed low monthly rental prices.

Personal Contract Hire (PCH) is the long-term lease of a brand-new vehicle.

Our car leasing deals give you the best opportunity to find a contract hire car for business use or for personal car leasing. This provides far more options with a greater range of cars to choose from, across a wider price range. PCH leasing allows you to drive a new car every few years, with relatively low monthly payments and no worries about the car’s resale value. PCP is similar, but gives you the option of buying the car in the future.

When you lease a car there are strict rules and restrictions, so make sure you understand how it work. Benefits of personal contract hire. PCP - the manufacturer owns the car.

If you pay the optional final payment (often referred to as the balloon payment), it becomes yours. HP - the manufacturer owns the car until you pay your last payment. IF YOU DECIDE TO TAKE OUT OUR PERSONAL CONTRACT PURCHASE ( PCP ) PLAN YOUR MONTHLY REPAYMENTS AND OPTIONAL LUMP SUM WILL VARY DEPENDING ON THE CAR AND THE ANNUAL MILEAGE THAT YOU CHOOSE.

TO SEE YOUR PERSONALISED EXAMPLE PLEASE SIGN IN TO ONLINE BANKING AND PROVIDE THE CAR DETAILS. Leasing - the leasing company owns the car. Is contract hire and leasing a good idea for a retired person?

Well, the answer is no different to any of our potential customers. We’ve broken them down into the kinds of cars you might be looking for, and for every recommendation, there’s a link to the manufacturers current deal, and our review of the car.