Personal Contract Purchase (PCP) - The Benefits

PCP is one of the best ways to purchase a new or ex-demo car today, it allows customers to purchase a car of their choice at a very attractive fixed monthly finance payment, with the benefit of a low initial deposit outlay and a guaranteed minimum future value (GMFV) at the end of the agreement.

PCP is particularly useful if you are a company car driver opting out of the company car scheme (Cash for Car), because you can use your company car allowance or mileage reclaims to fund your monthly PCP payments and avoid paying excessive company car taxes.

James French.Com Ltd has the benefit of offering both low interest rates for PCP, together with generous GMFV's making cars that would normally just be a dream, become a reality.

Personal Contract Purchase provides the benefits of driving a newer vehicle for a lower monthly payment. Unlike the traditional car purchase plan, this is achieved by deferring a percentage of the total cost of the vehicle until the end of the contract which is known as the GMFV (guaranteed minimum future value), then at the end of the agreement the customer has three options:-

Option 1
If you think the vehicle is worth less than the GMFV you can simply return it to the finance company. As long as the vehicle is in good condition and has not exceeded the agreed mileage, you have nothing more to pay. The finance company Guaranteed this future value and they will absorb the loss.

Option 2
If you want to keep the vehicle, you simply pay off the outstanding GMFV to the finance company. (The outstanding GMFV can be financed, subject to conditions)

Option 3
Thirdly, you can part exchange the vehicle with us for your next new vehicle. If the trade-in value is greater than the GMFV, this sum can be used towards a deposit on the new agreement. Alternatively, you can sell the vehicle privately and keep any profit over and above the GMFV.

Excess Mileage
At the beginning of the agreement, you decide on the total mileage for the contract period and if you decide to hand your vehicle back to the finance company and your mileage exceeds the agreed mileage, you simply pay a fixed amount for every extra mile.

Wear & Tear
It is in your interest to minimize the vehicle's 'wear and tear' and not exceed the agreed mileage. When the agreement has finished, the vehicle may well be worth more than the GMFV, providing you with extra value. In simple terms 'normal wear and tear' means that for its age and mileage, the vehicle is in fair working order, condition and repair. A detailed guide will be provided to you by the finance company at the start of your agreement.

 PCP Finance example - Landrover Freelander 2 S Automatic (James French Demonstration model). Assuming an annual mileage of 10,000 miles per year (other mileage deals are available)

The balance shown at (h) above is payable by: 47 monthly Rentals of £399.00

Followed by the second instalment of the Credit Arrangement Fee £139.00

And the optional Final Rental of £7,168.50 and the purchase fee of £10.00

Mileage 

Maximum Annual Mileage:

• 10,000 miles for each period of 12 months commencing from the date of this Agreement.

Maximum Total Mileage for Period of Hire:

• 41,500 miles (which shall be pro-rated for earlier termination).

Mileage on delivery: 1500 miles

• If the Annual Mileage or Total Mileage figures shown above are exceeded, an Excess Mileage charge of 4.80 pence per mile (exc. VAT) will be incurred.

 For more information please contact us >>