The Benefits Of PCP For Car Buyers
Since the first economic recession in 2008, PCP (Carvaluenow) has been leading the way in a new wave of optimism and opportunities in the new used car buying market.
When the recession hits, many people find that they cannot buy the perfect car in full. Due to the decline in sales, the entire industry needs a new viable way to carvaluenow, buy and sell cars, which has caused trouble for the workshop.
So what is PCP?
Personal Contract Purchase (PCP) is a form of car rental, and you can choose to purchase it directly at the end.
Similar to a lease purchase (HP), you pay for the total value of the car in monthly installments, so the main difference with PCP is that you don’t need to pay the total value of the car (carvaluenow), but the difference between the total value of the car. Buy a car now and when the contract expires: usually 4 years, although you can negotiate a different contract period.
This is called the guaranteed future value (GFV), and at the end of the contract, if you want to keep the car, you can cancel it all at once. Or, you can return it to the dealer.
How much you pay depends on how many miles you drive each year. An agreement on this must be reached at the beginning of the contract, and any excess mileage may be charged per mile when the vehicle is returned.
In short, your choices when signing a contract are:
- GFV paid a sum to purchase the vehicle.
- Return the car to the dealer after the last monthly payment. Since GFV is recognized at the beginning of the connection, no additional payment is required.
- You can exchange part of the car, and any remaining value in the contract can be used to pay the deposit for the new car.
What are the benefits of PCP?
- On the other hand, your monthly payment is lower because you did not pay the full price of the vehicle. But the price + interest: the GFV payment is the last.
- If you decide to be 100% dissatisfied with the car during the contract period, you can replace it at the end and look for a new car. People short selling cars has become a habit. Contracts, like many people deal with mobile phones.
- Some dealers provide fault and repair services during the contract period. Which means providing you with additional safety protection in the event of damage.
- If the value of the vehicle at the end of the contract is still higher than the agreed GFV. You can use the difference to pay the deposit for the next vehicle.
In particular, another advantage of PCP is the ability to drive vehicles that previously exceeded budget.
Hence, In the year from July 2014 to 2015, 705,000 people bought new cars through PCP. Accounting for 59% of the purchase volume at that time, which shows that their previous demand was not high.
Since you can choose to terminate the contract at any time without restrictions. This is an excellent opportunity to drive a better car while maintaining the flexibility of options that suit your situation.
For more detailed information about PCP and Carvaluenow and other financial options. I suggest you interact with our financing page, where we created a page detailing how it works.