| | | P | Personal Contract Purchase - PCP |
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| What is PCP?
PCP stands for Personal Contract Purchase this term is also used in the car sales business and you have to make an initial (new or fairly new cars) deposit and then pay a monthly charge for usually 3 years. After this leas period passes then the customer can choose between buying the car or giving it back. If he chooses the first option the he might have to pay a balloon payment or he has already payed it fully.
For example you want to buy a car and you don't have the money for it. The car of your desire costs £10.000 and you only have £6000. When you go lease the car then you have to put a fixed amount up in front. Let's say £4000 after that you make the contract for 2-3 years and pay a monthly fee for using the car. After the lease period is over then you might be obliged to pay extra and receive a car or return the car and choose another lease. | | | | |
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