Personal Contract Purchase

Personal Contract Purchase is Popular with:

Individuals who want to have a new car with a guaranteed future value, which they can buy at the end of the contract.

How Personal Contract Purchase works

Because personal contract purchase is a purchase agreement only the service portion attracts VAT. The fixed monthly payment effectively covers the depreciation but can include maintenance.

Advantages of Personal Contract Purchase

• Personal contract purchase can attract less VAT than Personal Contract Hire.
• Right to buy vehicle at the end of the contract with this car finance method.
• Disadvantage of Personal Contract Purchase.
• The contract is a personal liability in the same way as any other loan.

Summary

Personal contract purchase is a useful method of financing a car, if you feel that you may want to buy the vehicle at the end of the contract. Alternatively, you can return it to the leasing company with no further payments. This is subject to it being at contract mileage and consistent  with that age and mileage.

Manufacturer support is often reflected in this facility making it an attractive way of driving a new car.