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What is PCP?

Here's how it works

A PCP (Personal Contract Plan) is a type of hire purchase contract.  You don’t own the car until you have made the final payment. With a PCP, payment is broken down into three parts, 1) The deposit, 2) The Guaranteed Minimum Future Value (GMVF) and 3) The monthly payments;

  • The deposit: You choose a deposit - as little as 10% or as much as 30%

  • Guaranteed Minimum Future Value (GMFV) – a GMFV for your new car is determined - this is the final payment required for you to own your car at the end of the contract (GMFV is based on various factors, incl the length of the finance term, anticipated mileage and projected retail value).

And here's the really clever bit!

Your affordable monthly payments are then calculated on the difference between the deposit and the GMFV, plus interest. In a nutshell this means lower monthly repayments.

After the term of the PCP contract you generally have 3 options

 

1.     Hand the car back.

2.     Keep the car and pay/finance the final balance, to own the car.

3.     Enter into another PCP contract to buy a new car

PCP is suitable if you like the flexibility of options at the end of the agreement, lower monthly repayments suit you and You can confidently nominate your mileage.


 

What is HP (Hire Purchase Plan)?*


With a hire purchase contract you don’t own the car until you have made the final payment.  With a hire purchase agreement payment is broken down into 2 parts, the deposit and the monthly payments.  
 
  • The monthly payments are calculated on the cost of the car less the deposit, plus interest.
  • HP is suitable if eventual ownership is important to you and if your budget and circumstances suit fixed monthly payments. 

*Ask our finance experts for finance options available on specific models, terms and conditions apply to all finance options.

Watch our VIDEO to help you understand PCP and Hire Purchase  car finance plans

*Ask our finance experts for finance options available on specific models, terms and conditions apply to all finance options.


 

 

 

 

 

 

 


 

Watch our VIDEO to help you understand (HP) Hire Purchase car finance plans

*Ask our finance experts for finance options available on specific models, terms and conditions apply to all finance options


 

Disclaimer: Every effort has been made to ensure the accuracy of the information on this site, however, errors may occur or details may be omitted.We recommend that you always check full details with Kevin O' Leary Group prior to purchase.
This data does not form any part of a sales contract.
© Copyright 2017 Kevin O‚ÄôLeary Group