Guide to Personal Contract Purchase
Not too long ago the most common and probably most popular method or acquiring a vehicle was to simply purchase one outright. In the current financial climate however, it makes more sense and is actually more beneficial to lease a car. There are several lease options available; one of the most popular at Oneswoop.com is Personal Contract Purchase (PCP).
Leasing can seem confusing at first, but once you’ve done a little research you’ll see that it’s not really very complicated. All it basically entails is making monthly payments on a car, in essence you’re renting a vehicle.
An important step if you’re interested in PCP is requesting a quote, this is a simple and essential part of the process and takes no time at all. It’ll help you in the long run as it gives you a chance to view the prices that you’ll be paying each month, as well as letting you view the details of any contract you’ll be entering.
If you do decide to invest in PCP then you’ll have to negotiate the terms of said contract. This will cover items such as; contract length, value of initial deposit paid, finance amount and annual mileage estimate. All of these factor in to the rate you’ll have to pay each month.
Also discussed is the guaranteed future value (GFV) of the vehicle. This basically means how much it’ll be worth once the contract is over and it also contributes to the monthly rate you’ll be paying, as well as affecting the cost of the car at the end of the contract should you decide to purchase.
Of course, you don’t have to purchase the vehicle at the end of your contract. If you wish to simply move on or perhaps enter a new contract with a new vehicle then all of this is possible. As you can see PCP is a very beneficial option and is definitely one to consider.
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