Car Leasing Companies and Contract Hire Companies in the UK

Personal Contract Purchase Contracts

PCP’s as they are known, are car leasing contracts for the private individual who would like a hassle free and cost effective way to personally finance or contract a vehicle, and which also offers similar options to most business lease contract features, such as full or partial Service, Maintenance and Repair (SMR see more..) and which may include tyres and full breakdown recovery costs.

Usually, personal contract purchase plans include Road Fund Licence for the full contract period.  Please check this with your car leasing broker because many offers only cover the first 12 months, so you need to add this additional cost to compare prices as a like for like quotation. Also check that you have full Road Side Assistance cover after the first 12 months as many car manufacturers are removing this service, again add this cost if it is not covered to compare PCP car leasing deals against alternative manufacturers that offer this as an inclusive part of the manufacturers warranty.

The vast majority of Personal Contract Purchase contracts offer a realistic final balloon payment at the end of the contract, and should you wish to take up this option it will state within your contract that it carries a GFV price (Guarantee Future Value) which mean this is the maximum amount you will pay to take ownership of the vehicle at the end of your Personal Contract Purchase plan.  However if you decide for what ever reason that you do not what to buy the vehicle at the end of the contract period,  simply advise your car leasing broker and lease provider at least 3 months prior to the end of your contract, otherwise you may find a claim on your bank for the final payment if you leave it too late.

It is your responsibilty to tell your car leasing broker and lease provider which option you would like to take - they are not mind readers. Furthermore, if you decide to leave this decision close the the end of your contract and your replacement vehicle is not available on the due date, it will be unlikely that your lease provider will allow you to extend the contract on further, which may leave you having to hire a car - Plan your replacement in a timley manner otherwise motoring costs will rise. Your lease company will help you manage this.�