Personal Contract Purchase is suitable for businesses or private individuals, ideal for those wanting to end up owning the vehicle. Personal Contract Purchase is very similar in principal to Hire Purchase with two key differences:

Reduced monthly payments; instead of paying off the entire value of the car in monthly instalments, given your mileage, we forecast what the car should be worth at the end of the agreement and set aside this portion of the cars value (known as a balloon payment), to be paid at the end.

You have the option to hand the vehicle back at the end of the agreement, with no extra charge, subject to wear and tear and mileage allowance.

This type of lease gives you the option to purchase the vehicle or return it to the finance company at the end of the agreement

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Benefits

The balloon payment reduces monthly payments yet you still have the option to buy in the future, and retain the right to hand it back if you do not want it or used vehicle prices have crashed. The initial deposit is usually low, and the payments thereafter are fixed. There is usually the option to refinance the balloon payment at the end of the term, to help to spread the cost for a further period if required. Purchasing a car this way will make more expensive vehicles accessible to you, as initial deposits and monthly repayments are low.

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