Personal Contract Purchase sells soar ahead!

Is Personal Contract Purcahse the best package for you?

Personal Contract Purchase or PCP for short was not so long ago a relatively new concept.

The whole idea of personal contract purchase is one which for some still hard to completely understand. In essence you agree to drive a certain vehicle for a set period of time and in return pay monthly payments. As you are only funding a proportion of the cost of the purchase your payments tend to be less expensive. You are enjoying the vehicle in the best years of its lifetime and then handing it back, part exchanging it or settling /refinancing the optional final payment.

This means that personal contract purchase is a flexible cost efficient  way to buy a new or nearly new vehicle.

It really is a good news story for all parties. The manufacture is able to sell more cars, you can drive a vehicle and enjoy the low commitment and even your dealership has a higher than average likelihood of you returning back and thus they have prime stock, supplied by them, serviced by them. The used car sales managers dream.

Manufactures therefore have incentives, low rate finance  you to buy your vehicles on personal contract purchase with special schemes and even deposit contributions.

This is now backed by a recent report by the finance and leasing association who have said that personal contract purchase agreements have risen a massive 54%.

This now means that personal contract purchase schemes are equal to an eye watering four hundred and thirty million pounds.

Even the used car market is benefiting with consumers using finance house approved personal contract schemes to fund nearly two million pounds worth of nearly new cars in August alone.

Conversely standard hire purchase deals grew by just one per-cent in the same period.

Only time will tell if this means that with the growth of personal contract purchase plans standard  hire purchase may be gone for ever.

 

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