Personal Contract Purchase, usually known as PCP, is a very popular way to purchase a car that has some great benefits. It defers some of the vehicle cost until the end of the finance agreement. The deferred amount is known as the Guaranteed Minimum Future Value (GMFV) or sometimes as the Optional Final Payment. Interest on this deferred amount is included in the monthly payments that you are quoted.
You have the flexibility to choose the amount of deposit and the term of the agreement and as this is a fixed interest loan the payments will not change during the agreement.
You agree an annual mileage as part of this agreement and it is important that this is accurate. If you exceed the agreed mileage, and choose to hand your car back at the end of the agreement, then excess mileage charges will apply. Your car must also be in fair condition for its age and mileage. Your vehicle is at risk of repossession if you do not maintain the contractual repayments. We receive a commission from the Finance Lender if you take out a finance agreement.
*At the end of the agreement you have three choices:
Personal Contract Hire, usually known as PCH, is another popular way to pay for the use of a car that has some great benefits. It's a fantastic option if you want to drive a new car every few years, and don't want the option of ownership.
Just pay your initial rental, and then make your monthly rental payments for the length of the agreement.
Hire Purchase is a way to buy a vehicle with the flexibility to choose the amount of deposit and the term of the agreement. As this is a fixed interest agreement the monthly payments will not change during the agreement.
This is an agreement secured against the vehicle and you will not own the vehicle until you have made all of the payments, including any option to purchase fee. You can settle the agreement at any point by paying the outstanding amount.
Your vehicle is at risk of repossession if you do not maintain the contractual repayments. We receive a commission from the Finance Lender if you take out a finance agreement.
Cash Plan is an ideal finance method for individuals who are able to put down a larger deposit on their next car. It is essentially a hire purchase agreement that requires a high initial payment and no monthly fees. It also provides flexible end-of-contract options.
You have nothing to pay, as long as the vehicle is in good condition and hasn’t exceeded the agreed mileage limit.
You just need to pay the optional final payment, plus the purchase fee.
You can trade in your vehicle or sell it privately once you have settled your agreement. Any money that’s left over from the optional final payment can be used as a deposit for your next car.
Contact your local Macklin Motors dealership to learn more about the Cashplan.
Representative Finance Example For Online Purchases |
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|---|---|---|---|---|---|
| Customer deposit | £99 | ||||
| Monthly payments | £272.01 | ||||
| Cash Price | £15,000 | ||||
| Amount of credit | £14,901 | ||||
| Fees | £0.00 | ||||
| Optional final payment | £6,912 | ||||
| Total amount payable | £20,067.48 | ||||
| Annual mileage | 8000* | ||||
| Term | 48 months | ||||
| Fixed rate of interest | 6.15% | ||||
| Representative APR (fixed) | 11.70% | ||||
| Customer deposit | £2,158| Monthly payments |
£227.90 |
Cash Price |
£10,956 |
|
| Amount of credit | £8,798 | ||||
| Fees | £0.00 | ||||
| Total amount payable | £13,097.20 | ||||
| Term | 48 months | ||||
| Fixed rate of interest | 6.09% | ||||
| Representative APR (fixed) | 11.70% | ||||