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FINANCE EXPLAINED

Driver and Kia showroom employee reflected in wing mirror

PERSONAL CONTRACT PURCHASE (PCP)

A flexible and popular plan that provides you with the option to change your car on a regular basis.

Personal Contract Purchase explained
Deposit, monthly repayments, optional final payment

At the start of the agreement we’ll set an optional final payment for your car, this will be based upon your chosen agreement term and approximate annual mileage.


You pay a deposit 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:

KEY PRODUCT EXPLANATION
  • Circular arrows

    Pay the optional final payment and take ownership of the car

  • Car

    Hand back the car with nothing more to pay. Subject to mileage and fair wear and tear. If electing to hand the vehicle back at the end of contract, any mileage in excess of the agreed limit will be chargeable at 9p per mile (Inc. VAT) for all models.

  • Chequered flag

    Part exchange the car and use any equity as a deposit on your next car (if any available, which cannot be guaranteed)

PERSONAL MOTOR LOAN (PML)

A simple and traditional way to finance your car over a fixed period for a fixed monthly amount.

Personal Motor Loan explained movie information

Personal contract purchase for pcp, as it's known, is a flexible plan designed to help you change your car on a regular basis with PCP. You have a number of elements to consider, the deposit, the annual mileage, the length of the agreement and the optional final payment. You decide what level of deposit; if any, you want to put towards the purchase of the car. You also choose your repayment period, finally you set your anticipated annual mileage and this combined with your repayment period will determine your optional final payment. Your interest rate is fixed so all your monthly repayments are the same, at the end of the repayment period you have three choices, you can hand the car back to us with nothing further to pay - providing the car hasn't exceeded the aggrieved mileage and is within fair wear and tear guidelines, you can pay the optional final payment and the car becomes yours or you can putt exchange the car using any equity over and above the optional final payment as deposit on your next car. So let's recap, a personal contract purchase plan gives you fixed monthly repayments the option to include a deposit and a choice of repayment periods at the end of the agreement. You can either return the car with no further costs providing the car hasn't exceeded the agreed mileage and is within fair wear and tear guidelines, you can pay the optional final payment and the car is yours, or part exchange it and use any equity as a deposit on your next car. As with all our finance products there are no arrangement or purchase fees, if you'd like to know more about personal contract purchase - please speak to your dealer representative.

Deposit, monthly repayments

You pay a deposit then make regular monthly repayments to repay the balance, it’s that simple.


As your interest rate is fixed you’ll know exactly how much you’ll repay at the outset of the agreement.


Only once all monthly repayments have been made will you own the car

KEY PRODUCT EXPLANATION