PCP Car Finance - EwaQw/EwaQwa GitHub Wiki
The popularity of PCP has increased dramatically in recent years. In fact, about 80% of new and used cars use PCP. But do you know how it works? For some car buyers, PCP means the opportunity to purchase a higher-quality car at a lower monthly cost. But PCP can be complicated, and buyers may not know that if they want to terminate the contract, they may incur large costs and fines.
PCP Car Finance is short for Personal Contract Purchase. It appeared in the late 2000s.
After changes in the procedure for calculating taxes on official cars, it has become a popular option for small businesses and the mass consumer market.
In essence, PCP combines renting a vehicle for personal use with the more traditional method of buying in installments, for more information, follow the link https://carfinancemax.com/
Instead of paying equal amounts over a certain period of time to buy a car, when buying in installments, you make an initial payment and pay smaller monthly payments until the end of the contract period. At this point, you have the opportunity to make the last "down payment" to immediately buy a car. Or you can return it without additional obligations, sell it or even exchange it.
How does PCP work?
A typical PCP car financing deal is similar to a traditional installment purchase or vehicle rental, only with the additional option of a final lump sum payment if you decide you want to keep the car for yourself.
A typical PCP agreement consists of three main elements:
-
Deposit: the amount you pay in advance to start cooperation under the PCP program.
-
Loan amount: The amount that you borrow and then pay back monthly during the term of the agreement.
-
Final payment: The amount you pay at the end of the PCP program to fully own your car.
Sources of the article: