Which Statement Best Describes A Personal Contract Purchase Agreement

Hey, Imon. Yes, you can absolutely have a PCP on a used car. The APR will generally be significantly higher than a new car, but the car will obviously be cheaper. In addition, there is usually little or no deposit fee on a used car, which is a common discount tactic for financing offers on new cars. If you partially replace the car, it depends on the offer you receive for your car. If it is more than the billing figure, then the mileage is irrelevant and the trader will pay the financing. If the valuation is less than the billing figure, you either have to use the GMFV and pay the excess miles, or you accept the partial exchange offer and pay the negative equity based on the price money. Good morning, Rahul. You pay interest at 12,000 USD (15K car price minus 3K deposit), which is the total amount borrowed. Your monthly payments include interest on this total amount. You pay X plus per month at the end of the agreement, return the car or instead pay 6500 euros.

Hey, Liam. Depends on how long you`ll have the car for. Take a look at this article on the prepayment of your financing, and this one on your voluntary termination rights to see if this applies to you. I am looking to use PCP to finance the purchase of a car. I did some research and I reduced to 2 models of the same range of cars. The cheaper car with a contribution to production runs on the same monthly repayments as the more expensive car. The final amount of the ball for the cheaper car is thousands of pounds less than the more expensive car, so the amount is more expensively financed. Is it better, financially, to go for the more expensive vehicle or to drive the cheaper car? I can do what the car at the end of the deal to buy-cheers Hi Laura. LEX tends to finance fleets and business customers, so their terms of purchase could be very different from those of other companies. I do not think they offer a PCP, even though they have a contractual purchase option that is for small businesses. If you use your vehicle for personal use more than professional use, a business finance option is generally not the best choice. I could get the car as a function car (insured, maintained, etc.), which is an option (in the high tax rate of taxpayers, base salary 85k) or in an HP or PCP.

I have a PCP with a BMW that started in July 2010. After reading your article on VT after the 50% mark, I thought this would probably be the best way forward, but due to the nature of my work and my family, I need to have a car. I called BMW today, which gave me a comparative figure of 14,000 dollars that I obviously do not because of the newer HMRC-Shenanigans. I might be able to continue with the PCP, but with a little distance.