At Volvo Shrewsbury our trained specialists will help you find the best finance solution and tailor it to your personal requirements. We have a variety of highly competitive finance packages which enables us to provide you a choice of monthly payment or monthly rental solutions to suit your budget.
Personal Contract Purchase (PCP) is a finance product that allows you the opportunity to buy a new or a used car.
It is similar to a Hire Purchase agreement as you will usually pay an initial deposit, followed by monthly instalments over a term typically between 24 and 48 months.
PCP differs from Hire Purchase (HP) because your monthly instalments are paying off the depreciation of the car, and not its entire value, over the course of the term, this means you could choose a lower deposit or a lower monthly payment. Also, once you get to the end of your agreement, there is a final payment (often referred to as a minimum guaranteed future value). When you have paid your monthly payments you have three choices, 1. pay the final payment, 2. hand the car back with nothing more to pay (subject to mileage and condition) and 3. by far the most popular choice, part exchange your car where any equity you have is used as a deposit for your next car (or you can take all or part of your equity as lump sum cashback).
Purchase is a way to finance buying a new or used car where there are fixed monthly payments, once these are paid in full you will own the car. If you wish to change the car before paying all the monthly payments you will need to settle the finance as part of your new deal. Alternatively you can choose to settle the outstanding finance on your car at any time.
Yes, you can end your finance early simply pay off the outstanding balance, or "finance settlement "as it is usually called, as provided from your finance company. There are different provisions within each finance agreement that allows you to do just that. If you have got through two-thirds of the way through your finance agreement, the options to end the finance agreement early open up.
Under a Personal Contract Purchase agreement, you can also pay the finance settlement bringing the agreement to an end early. After that,
you can choose to hand the car back or you have a second option.