Our most popular choice for motor finance, due to its flexibility and low monthly repayments. You will make an initial payment, followed by a series of monthly payments. At the end of the term you will have a choice of making a final lump sum payment in order to own the car, or to simply return the car without any further obligation. This type of finance is ideal if you plan to change your car at the end of the contract period.

A Personal Contract Purchase (PCP) plan will enable you to purchase a new vehicle with lower monthly repayments. The way this is achieved is by deferring an amount of the total cost of the vehicle to the end of the contract. This amount is known as the Guaranteed Future Value (GFV) which is often referred to as the optional final balloon payment.

The Guaranteed Future Value plus your deposit is subtracted from the cash price of the vehicle and your monthly payments are based on the balance (plus interest on the balance and the GFV).

By only repaying the difference between the cash price and the optional balloon payment you are only financing the depreciation of the car.

At the end of the contract you have four options:

• You can return the vehicle to the finance company. As long as you have not exceeded the agreed mileage, you will have nothing more to pay.
• If you want to keep the vehicle, you can simply pay off or refinance the outstanding balloon payment.
• You can come back to Buyacar and part exchange your vehicle for the next new vehicle. If the trade-in value is greater than the GFV, the difference can be used towards a deposit on the next agreement.
• You can sell the vehicle privately and keep any profit over and above the GFV.

Want to lower your monthly payment?
Within a PCP quote there are some things with which you can lower your monthly payment.

• Consider financing the car over a longer contract period – perhaps a 48 month contract will make your car of choice more affordable.
• The amount of deposit you are able to put down will dramatically effect your monthly payments.
• It is worth calculating your annual mileage accurately rather than guessing. If you only do 6000 miles per year but have left your annual mileage figure at 10000 miles, your balloon payment will be lower and you will be paying more unnecessarily.