It is a kind of hire purchase agreement made available from vehicle dealers being means to fund an automobile. In a PCP contract, you spend a deposit and continue steadily to make regular instalments, often over three years. There is certainly often a lump that is large payment at the conclusion associated with the agreement.
In the final end associated with agreement you’ll either:
- Pay the lump that is final and keep carefully the car, or
- Return the vehicle to the vendor (it is possible to sign up for a brand new pcp arrangement on another vehicle).
You don’t acquire the vehicle before the final repayment is made. You have to stay glued to restrictions that are certain use and upkeep, such as for instance mileage limitations and servicing responsibilities. PCPs can seem extremely appealing simply because they normally have really low month-to-month repayments nevertheless they can be very complex in comparison to other styles of motor finance. It’s important to comprehend all of the conditions and terms before you subscribe to a PCP. You will find out more about PCPs through the CCPC.
Credit sale agreements:
These agreements are comparable to employ purchase agreements for the reason that you get and pay money for a product in instalments. an important distinction is that a customer immediately has the goods bought under a credit purchase contract. The APR charged with this sort of loan is typically more than that on charge cards but may not be above 23%.