Personal Contract Purchase
This is a hassle free way of financing your ideal car as it is a fixed monthly payment over a set contract period where you have agreed the vehicle will cover a set amount of miles per year. The main difference between Personal Contract Hire and Personal Contract Purchase is that at the end of the contract there is an option to buy the vehicle. This price is known as a “balloon payment” which is predetermined at the start of your contract. You can still decide to return the vehicle at no additional cost but you have flexibility within the contract to purchase the vehicle at the end of the contract if you so wish.
The key benefits of Personal Contract Purchase to the Private Individual are:
- Low Initial Deposit
- Fixed monthly payment
- Writing down allowance
- No risk on residual value
- Optional final payment
