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Personal Contract Purchase. P.C.P.
Personal Contract Purchase (PCP) is by far
the most popular method of funding your vehicle when taking a Cash for Car
option.
It is a purchase agreement where the
monthly payment is kept low by the implementation of a Guaranteed Future Value
(GFV).
The GFV is stated at the outset of the lease
and is determined by your annual mileage. At the end of the lease term, you
have three options:
1) Hand back the vehicle to the finance leasing company.
(An excess mileage charge may be incurred if
you exceed the stated mileage).
2) Purchase the vehicle at the GFV
value.
(Regardless of market value. Smartway Leasing can arrange a re-financing
package if required).
3) Part-exchange the vehicle.
(This allows you the possibility of taking equity from the difference
between the part-exchange and GFV figure on the vehicle. This amount can be
used as a deposit on your next vehicle).
Key
Benefits
· Low deposit.
· Flexible deposit terms.
· Low monthly payments.
· Choice of rental periods.
· Allows ownership of the
vehicle
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