 |  |  |
|
| |
PCP FinancePCP or Personal Contract Purchase is an interesting method to finance a brand new car.It utilises the fact that the car will still be worth several thousand after three years and uses this future valuation to enable the normal monthly payments to be much lower than would be the case with a traditional HP loan. The best way to explain how it works is to give an example: You are looking to buy a brand new car for £7500. A traditional loan might mean for example, a deposit of £500 followed by 36 months at £224 (roughly 10% apr) For many this monthly cost might be too high and so this is where PCP can help: Deposit £500 followed by 36 months at £147. (again roughly 10% apr) At the end of the 3 years there is still an amount left to pay of £3200, however you don't have to pay that but can simply hand the car back or better still, trade it in against a new one and start over again. Many people choose to repeat this process every three years for the simple reason that they are then constantly covered by the manufacturers 3 year warranty and therefore should never have any garage bills or MOT's to worry about. Of course you can argue that this is not the best way to buy a car in purely financial terms - cash is always best of course - but for many people this represents an affordable way to get behind the wheel of a brand new car! For more info and current deals on offer we have a specialist pcp site at www.cheap-pcp-deals.co.uk |
 | With Affordable Monthly Payments! |  |