Personal Contract Plan Information
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1) If the car has stayed within the mileage limit and is in good condition you can give the car back, if the car is worth more than the remaining balance you are paid the difference giving you a deposit for your next car
2) You can choose to pay the outstanding amount and keep the car (this would usually have to be arranged by you and could be from savings or a personal loan).
You do need to be aware though that many PCP contracts have very specific terms and conditions and often limit your mileage. If you exceed this mileage and decide to give the car back at the end of the term then you will be charged for any additional miles when you give the car back and this can be quite costly.
When you first consider a PCP contract it could be wise to ask if there is the option to amend your annual mileage during the contract as what you think you do now could really change if you were to take another job or even move house and without the flexibility to make amendments you could end up having to pay high mileage charges at the end of your plan.
Another point to keep in mind is don't assume that only the car dealership can offer you a PCP deal, there are many available on the market and you should really take a look at the others available. Always consider the APR offered, any fees and also the balloon payment at the end of the term, as overall a lower APR plan might actually cost more than a plan with has a slightly higher APR and a lower final balloon payment and lower fees.Back to Car Finance.