One of two funding methods which we offer for private individuals wishing to opt
out of a company car scheme or would like a car for private use. PCP also gives
you the customer the same benefits if you lease a vehicle along with the option
to own it if you wish.
PCP enables you to upgrade to a vehicle that might otherwise be unaffordable.
A guaranteed residual value is set by the Leasing Company at the start of the contract;
this gives you a number of options at the end of the contract:
- Sell the vehicle and use the equity as a deposit for the next vehicle
- Keep the vehicle by paying the outstanding residual value
- Keep the vehicle and re-finance the outstanding value over a longer period of time
- Hand the vehicle back to the Leasing company at the end of the contract
Key customer benefits:
- You can trade up to an otherwise unaffordable vehicle (eg. an executive/ sports
- Hassle-free and cost-effective way to finance a vehicle
- The convenience of an optional full maintenance service, at a fixed monthly cost,
What is PCP?
PCP is a conditional sale product offered through our Leasing Company to non-business
customers. It is regulated by the Consumer Credit Act 1974 depending on the lessee’s
status and value of the vehicle.
It is for private individuals who want a hassle free and cost effective way to finance
and maintain a vehicle.
As a business user funder our Leasing Company’s offering of a Personal Contract
Purchase (PCP) product is ideal for anyone wishing to opt out of a company car.
As this is a conditional sale agreement you cannot re-schedule the contract or extend
You the customer have the option to purchase the vehicle, or to simply hand it back
at the end of the contract period (subject to settlement of any excess mileage and
You can include the same comprehensive service, maintenance and repair options offered
through Contract Purchase, although you will be responsible for the annual review
of the Road Fund Tax.
Finance payments are not subject to VAT.
If the optional service package is taken VAT is payable on the service costs.
How does it work?
At the start of the contract our Leasing Company sets the final payment amount under
You may choose to pay the final payment and keep the vehicle or return the vehicle
in full satisfaction of the final payment.
The vehicle is registered in the hirer’s name. You can also enjoy the convenience
of a full maintenance service, at a fixed monthly cost if you wish.
Road Fund License is only provided for the first year of the contract only.
How is VAT accounted for?
As this is a personal contract offered for non-business use there are no VAT or
Corporation tax advantages.
What happens at the end on the Contract?
Hand the vehicle back to the Leasing Company. Any damage on the vehicle or missing
service history, keys etc will be charged as detailed in the Leasing Company’s ‘Fair
Wear & Tear Guide’.
You may choose to pay the final payment and keep the vehicle.
Re-Finance the final rental. 28 days notice is required prior to contract expiry