Personal Contract Purchase

Advantages of Personal Contract Purchase

Choosing a PCP plan typically results in lower monthly payments compared to a Hire Purchase agreement.
It’s a popular choice for those who like to switch cars regularly or keep their options open for the end of the term.

BUDGET-FRIENDLY

Lower monthly payments compared to Hire Purchase.

FLEXIBILITY

Trade in, return or buy—PCP keeps your options open.

NO DEPRECIATION WORRIES

Simply return the car at the end of the term if depreciation concerns you.

LOW INITIAL PAYMENT

Makes it easier to get into a new car without breaking the bank.

EASY TO CHANGE

Switching vehicles is straightforward with the trade-in option.

End of Contract Options

One of the standout features of PCP is the flexibility it offers at the end of your contract term. Here are your main choices:

Trade-In: Swap your car for a new one. If the trade-in value is higher than the Balloon Payment, you can use the difference as a deposit on a new vehicle.
Return to Funder: Hand back the keys and walk away, provided the car meets the agreed-upon mileage and condition requirements.
Buy the Vehicle: Make the Balloon Payment and the car is yours. AVL can also assist in refinancing this payment.

Things to Consider

End-of-Term Decision: You’ll need to decide whether to trade in, return, or buy the vehicle at the end of your contract.
Insurance Requirement: Comprehensive vehicle insurance is a must for the contract duration.