Similar to a Hire Purchase Loan, with PCP you pay a deposit and agree on a monthly payment for the car. However, the deposit and the monthly payments tend to be significantly lower than a Hire Purchase Loan.
The monthly payments are less, due to a sting at the tail end of the agreement – this is called, a ‘balloon payment’. However, the balloon payment is optional, and you have a few options at your disposal.
Do you have any other questions regarding vehicle finance? We have put together some of our most common questions. Click on the links below.