Personal Contract Purchase Explained (PCP)?

Basically, it’s a method of getting a car through a loan agreement, but it’s important to know how it differs from a hire purchase agreement. With a PCP, you pay for the depreciation of the car only, in monthly instalments. And that’s after you pay an initial deposit. And when the finance terms finishes, you don’t end up owning the car; unless you want to (we’ll come to that a little later).

If you want to change car every so often, say between 2-4 years, then a PCP car finance agreement is ideal for you. It’s for this reason that it’s a very popular car financing choice.

So with a Ford PCP finance deal, you can drive away with a new car on finance. And once you fancy an upgrade, you can easily do it. So whether you are after a Fiesta, Ka, Focus or Galaxy, you can do so with a Ford PCP deal from Car Money.

Why choose Ford PCP finance?

We can’t drive it home enough; personal contract purchase agreements are great for drivers that want to change cars quite often. If that’s not you, and you think you’re more likely to buy the car outright, or keep it for a long time, we’d steer you in the direction of a hire purchase agreement.

Here are some more benefits of opting for a Ford PCP finance agreement:

• Take advantage of a low initial deposit & lower monthly repayments. You could drive away a better car than you would if you choose a HP finance agreement.
• A specified Guaranteed Minimum Future Value (GMFV), therefore protecting you from market fluctuations.
• It’s a very flexible method of car finance, leaving you with a few options at the end of the agreement, with the option to buy the car outright if you’ve grown to love it.

Your Ford PCP finance deal ends. What next?

When you take advantage of a Ford PCP finance agreement, you’ll have 3 options to think about once when the contract finishes. Let’s imagine you absolutely love the car and want to keep it. What should you do? Quite simply, you can buy the car outright with a one-off balloon payment and the car is yours.

In contrast, maybe a PCP agreement was a good fit for you, or your financial circumstances change. No problem, you can walk away at the end of the agreement, once any outstanding charges have been paid (eg. Over-mileage charge or damages).

The most popular option is to upgrade to a new car by entering into a new PCP agreement, meaning you can upgrade to another Ford or change make and model completely. It’s up to you. That’s the beauty of opting for a Ford PCP finance deal. Get in touch today and find out how we can get the best Ford PCP deals for you. Take our Ford PCP calculator for a spin & drive away a brand new Fiesta, Ka, Galaxy or Focus!