Personal Contract Purchase Explained.
Similar to a Personal Motor Loan contract but with additional flexibility since part of the cost is deferred until the end of your contract. Also known as an optional final payment (OFP), it may give you the benefit of lower monthly repayments.
At the start of the contract we’ll set this optional final payment for the car, this will be based upon your chosen term and approximate annual mileage.
You select the deposit you wish to pay and then make monthly repayments based on the outstanding loan balance, less the optional final payment.
At the end of the monthly repayment period you’ll have three options:
You can pay the optional final payment and the car is yours
You can hand the car back to us, with nothing further to pay (subject to mileage and fair wear and tear)
You can part exchange the car, using any equity over and above the optional final payment as deposit on your next car. Although equity is anticipated, this cannot be guaranteed.
Watch a short video explaining how this product works: