PCP finance is a very popular way of paying for a new car. It is attractive because of the freedom of choice and flexibility.
Features and benefits:
- Low initial payment allow for accurate monthly budgeting
- Fixed monthly payments
- You may be able to refinance the balloon payment
- No depreciation concerns if you wish to walk away at the end
- Maintenance and servicing can be included
- Fixed balloon or guaranteed future value to purchase payment when you first take out the contract
- Cost effective
- Can be used to finance new or used vehicles
Things to be aware of:
- You will have to make a decision at the end of the contract as to whether you wish to sell the vehicle, return it or Keep it - this is often seen as an advantage to most people.
- You must have fully comprehensive vehicle insurance