How do PCP agreements work?
Firstly, you choose the right vehicle for you then you will make three decisions that will affect your monthly repayments
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Your deposit – how much money you want to pay upfront
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Your repayment period – the length of the contract
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Your estimated annual mileage
Once these have been decided your monthly payments can be calculated and GFV fixed.
During your agreement you have the option to settle the finance at any time by repaying the outstanding balance including the GFV.
Then, at the end of your contract you’ll have three options:
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You can give the car back subject to mileage and vehicle condition
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Alternatively, you can keep it as long as the balloon payment has been paid off
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Or you can trade your car in and choose a new vehicle.