What is Personal Contract Purchase (PCP)?
Personal Contract Purchase is one of the most affordable and popular schemes currently available. In paying a deposit followed by monthly payments that cover the depreciation in value between the sale price and the Guaranteed Future Value, you can take advantage of manageable costs and the best vehicles around.

What are the advantages of PCP?

  • Lower monthly repayments when compared to other financing schemes
  • The option at the end of the contract to either buy or return the vehicle with no further obligations
  • When returning the vehicle, should its worth be greater than the Guaranteed Future Value, you can use this figure as a deposit on another vehicle

What should you consider when opting for PCP?

  • Whether you wish to own the vehicle outright through payment of the optional balloon payment at the end of the agreement
  • Your annual mileage allowance, with mileage in excess of this charged extra
  • You will be unable to sell the vehicle without settling the agreement in full
  • You will be required to service and maintain the vehicle in accordance with the terms of the contract

Can I settle my PCP agreement early?

By requesting an early settlement figure from the financing company, you will be able to settle the agreement at any time. However, you may incur negative equity - the difference between the vehicle’s worth and what you still owe.

What is Hire Purchase (HP)?
An alternative to PCP is a Hire Purchase agreement. This is often preferable to motorists as it enables you to become the outright owner of the vehicle at the end of the contracted term. Simply pay a deposit then pay off the remaining balance through fixed monthly instalments.

What are the advantages of HP?​

  • Full vehicle ownership at the end of the agreement
  • Manageable monthly repayments that spread the cost of purchasing
  • No mileage restrictions or obligations as found in PCP

What should you consider when opting for HP?

  • Higher monthly repayments in comparison to PCP agreements
  • You cannot sell the vehicle until the agreement is settled
  • You only become the full owner once all repayments have been made

Can I settle my HP agreement early?

You can. Your financing company will be able to provide an early settlement figure on request. Of course, you should note that you may incur additional charges should there be a difference between the worth of the vehicle and the amount outstanding.

What product is best for me?

The team at RRG ŠKODA is on hand to provide you with all the support and assistance you need to make the most suitable purchase for you. We’ll advise on the advantages of each scheme that is available and clearly detail the costs of each agreement. Simply get in touch with a member of the team today to learn more.