Personal Contract Purchase (PCP) is a consistently popular type of car finance for UK motorists. It has advantages for individuals and business customers.
The main benefit of PCP is the flexibility from the very beginning. There are a wide range of ŠKODA models to choose from, such as the Octavia, Fabia and Rapid Spaceback.
Deposit amounts can be relatively low – a bonus for smaller businesses. It may also be possible to use one of your current vehicles in part exchange. The deposit, length of agreement and monthly payments are all adjusted around your company budget.
Part of the value of your chosen ŠKODA is offset until the end of the agreement. This is commonly called a 'balloon payment', and is calculated based on the Guaranteed Minimum Future Value (GMFV). Even this value is determined relative to your expected usage of the vehicle. In this way, the monthly repayments on PCP are typically lower than on other types of car finance.
When the term is ending, you will have several choices. Making all payments, including the balloon payment, ensures that the vehicle is now yours. Companies seeking to own their own fleet will find PCP the better option compared to Contract Hire.
Alternatively, return the ŠKODA car with nothing further to pay. Should your motoring needs change, upgrade to a higher-specification model or try another type of vehicle.
Your local dealer in Scarborough is Des Winks ŠKODA. Contact us today to begin the search for a ŠKODA car and arrange a Personal Contract Purchase plan.