Personal Contract Hire
Representative Example
Rates from 9.9% APR, Representative APR 21.4%. Borrowing £10,000 over 60 months with a representative APR of 21.4% fixed rate, monthly payment £260.83, Total cost of credit £5,650, total amount repayable £15,750.Presto Finance Ltd is a credit broker, not a lender.
What is Personal Contract Purchase Finance?
Personal Contract Payment (PCP) is a finance product that reduces the monthly payments by delaying part of the repayment until the end of the deal. It offers a wide range of flexibility with monthly payments, annual mileage and deposit all adjustable to meet your needs. You can also settle your agreement at any time.
All these factors play a part in how much you pay back each month. PCP is a very flexible method of payment. As with Hire Purchase, the more you put down as a deposit, the less you will pay back each month, however with PCP a low annual mileage can also mean that you pay less per month. An accurate mileage prediction is important for PCP as it affects the residual value of the car so it is important to give clear and accurate information to your Business Manager as penalties can apply if you exceed your stated mileage.
Benefits of PCP
- Lower monthly payments than Hire Purchase or a Personal Loan
- The ability to drive a more expensive car
- The future value of the car is guaranteed by the finance company
- Multiple options open to you at the end of the deal
