AA Car Finance is provided by Evolution Funding Ltd. AA Cars introduces you to Evolution and both are brokers and not lenders. The payment received by the AA from Evolution will vary dependent on your chosen lender.
PCP is a finance plan where you make equal monthly payments over an agreed term, with a larger final repayment due at the end if you decide to keep the car.
PCP could be right for you if you're thinking of changing your car in the next few years, or if you're unsure whether you want to buy the car at the end of the agreement.
With PCP, you can finance your perfect car. Simply follow the steps below:
PCP is the most commonly used secured finance solution for buying a car and the agreement is made up of some key elements.
If there's anything you'd like to discuss, just call or email:
Call: 01246 458 809 Email [email protected]PCP stands for Personal Contract Purchase. Which is because you have the option to purchase the vehicle at a pre-agreed guaranteed future value at the end of the agreement.
A PCP deal is made up of 3 primary elements.
During the period of repayment, the vehicle is owned by the finance company who you agreed to take your finance from. If you choose to make the pre-agreed guaranteed final payment at the end of the agreement, at this point the vehicle will be owned by you.
PCP agreements usually run between 24 to 60 months (2 years to 5 years).
You can settle your PCP loan early, however this may be subject to penalty charges.
A balloon payment is another name for the guaranteed future value of a vehicle or the pre-agreed final payment made at the end of your PCP agreement, should you choose to purchase the car.
The Guaranteed Future Value of a vehicle is another name for a balloon payment or the pre-agreed final payment made at the end of your PCP agreement, should you choose to purchase the car.
There are many alternatives to PCP, however the main options chosen by the majority of vehicle purchasers are:
Yes, but this is dependent upon the terms you agreed to with you PCP finance lender. Whatever equity you have amassed on the vehicle from payments you have already made, can usually be used towards your next PCP vehicle agreement.
It is key that you understand your expected annual mileage during the term of your PCP agreement. The mileage has a direct impact on the guaranteed future value of the vehicle and hence will have an impact on the monthly payments you make. Also, if you exceed your pre-agreed mileage, you will usually be charge an excess mileage charge at the end of your PCP agreement.
No. However, having a deposit will reduce the amount you need to borrow and could result in you receiving a lower APR on your PCP agreement.
HP (Hire Purchase) is a finance plan that allows you to spread the cost of the car by making monthly payments over an agreed term. You make higher monthly payments than a PCP agreement, so that when you come to the end of the agreement you'll own the car. Unlike PCP, there are no limits on mileage. HP could be right for you if want to own the car at the end of the agreement, without the need to make a larger final payment.
PCP is a finance plan where you make equal monthly payments over an agreed term, with a larger final repayment due at the end if you decide to keep the car. At the end of the agreement, you have three options. You can hand the car back to the finance company (the car must be in good condition and within the agreed mileage, otherwise charges may apply), part exchange it for another car on a new agreement (subject to status), or pay the final repayment to own the car. PCP could be right for you if you're thinking of changing your car in the next few years, or if you're unsure whether you want to buy the car at the end of the agreement.
PCP agreements can be offered to people with a whole spectrum of credit scores. However, the higher your credit score, the more likely you are to be accepted.
PCP is a finance plan where you make equal monthly payments over an agreed term, with a larger final repayment due at the end if you decide to keep the car. PCP could be right for you if you're thinking of changing your car in the next few years, or if you're unsure whether you want to buy the car at the end of the agreement.
Yes, but this is dependent upon the terms you agreed to with you PCP finance lender. Whatever equity you have amassed on the vehicle from payments you have already made, can usually be used towards your next PCP vehicle agreement.
At the end of your PCP agreement, you will have 3 options available:
No. Once you have signed up to a PCP agreement, you are not able to change your mind and switch to an alternative finance product mid-term.
This is possible, but it would constitute a new PCP agreement. A new PCP agreement is subject to status at the time of application.
No. The guaranteed future value agreed at the start of the PCP agreement is based on the vehicle being unmodified, returned in good condition and within the agreed mileage. If any of these conditions are not met, charges will usually apply and your agreement could become invalid.
When you come to the end of your PCP agreement, you can sell your car and use the equity you have already paid towards a new car. You can sell your car online with the AA, thanks to our partnership with Motorway. Get the best price for your car from 5,000+ dealers. Dealers clear your finance and it’s completely free with home collection.
Yes, PCP deals are available on both new and used cars, as long as they meet the criteria set out by the finance provider. To increase the chances of a PCP agreement being accepted on a vehicle, it is best to choose a car that is less than 4 years old and has low mileage at the start of the agreement.
