{"id":1440,"date":"2020-02-25T13:02:34","date_gmt":"2020-02-25T07:32:34","guid":{"rendered":"https:\/\/www.extramilefinance.uk\/blog\/?p=1440"},"modified":"2020-02-25T13:06:26","modified_gmt":"2020-02-25T07:36:26","slug":"pcp-car-finance-its-work","status":"publish","type":"post","link":"https:\/\/www.extramilefinance.uk\/blog\/pcp-car-finance-its-work\/","title":{"rendered":"Why Go With Personal Contract Purchase to Finance Your Car"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_52 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69f4b6f353146\"><span class=\"\"><span style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69f4b6f353146\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.extramilefinance.uk\/blog\/pcp-car-finance-its-work\/#What_is_PCP_Car_Finance_And_How_it_Works\" title=\"What is PCP Car Finance And How it Works\">What is PCP Car Finance And How it Works<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.extramilefinance.uk\/blog\/pcp-car-finance-its-work\/#How_Does_PCP_Finance_Work\" title=\"How Does PCP Finance Work?\">How Does PCP Finance Work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.extramilefinance.uk\/blog\/pcp-car-finance-its-work\/#Things_You_Will_Need_to_Get_PPC_Finance\" title=\"Things You Will Need to Get PPC Finance \">Things You Will Need to Get PPC Finance <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.extramilefinance.uk\/blog\/pcp-car-finance-its-work\/#The_Additional_Payment_That_You_Might_Have_To_Pay\" title=\"The Additional Payment That You Might Have To Pay \">The Additional Payment That You Might Have To Pay <\/a><\/li><\/ul><\/nav><\/div>\n\n<p>Everyone desires to have their car in the\ngarage, be it a freshly passed grad student or a family man. Many people out\nthere go for the option of taking financial assistance from external sources.\nNow, when it comes to financing a car, plenty of options are available in the\nmarket. In times, this can be confusing for the person which one to choose. <\/p>\n\n\n\n<p>However, if you are looking for an affordable option where you have to make lower payments, then Personal contract Purchase could be the right choice. It is a bit complicated financial product but provides a plethora of benefits to the car borrower. Thus, before you plan to apply, you must first understand <strong>what is PCP finance<\/strong> and then come up with a decision. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_PCP_Car_Finance_And_How_it_Works\"><\/span><strong>What is PCP Car Finance And How it Works<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Purchase Contract Purchase or in short PCP is a loan product that helps the borrower to purchase a car. However, the thing that makes PCP apart from other <a href=\"https:\/\/www.extramilefinance.uk\/\">loans<\/a> is that you don\u2019t have to pay the full car amount. Also, you will have the option of whether you want to buy the car or move to the next deal. <\/p>\n\n\n\n<p>It might get difficult for you to\ncomprehend the process of PCP financing. Thus, to make you understand, we have\nbroken down it into three major components. <\/p>\n\n\n\n<p><strong>Deposit<\/strong><\/p>\n\n\n\n<p>The first thing that the financial company\nor dealer will ask you to provide a deposit that could be anywhere around 10 %\nof the car\u2019s cost. The larger will be the deposit, the lesser will be the\namount that you will owe. It can be a deciding factor how much you will pay in\nthe end as the total amount. <\/p>\n\n\n\n<p><strong>The borrowed amount <\/strong><\/p>\n\n\n\n<p>Now, the borrowing amount will be\ndetermined by the dealer or finance company. They will evaluate the\ndepreciation value of the car within the given period of the deal. So, the\nreduction in the car price minus the deposit is going to be the amount that you\nwill have to borrow. So, this will be the amount that you will have to pay\nalong with interest. <\/p>\n\n\n\n<p><strong>The balloon payment <\/strong><\/p>\n\n\n\n<p>The final part of the PCP financing is the balloon payment or also known as the Guaranteed Minimum Future Value (GMFV). It is the final value of the car, which is already calculated by the dealer during the early stage. This final amount will be presented you as optional, which you have to pay if you want to keep the car. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Does_PCP_Finance_Work\"><\/span><strong>How Does PCP Finance Work?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>PPC works like other loan products where\nyou can spread your payments of the car for a fixed period, which is generally\naround (24-36 months).&nbsp; The borrower will\nhave to make the deposit and the fixed monthly instalment throughout the term\nof the loan. <\/p>\n\n\n\n<p>After that, the borrower is given the\noption where he\/she wants to keep the car or not for which the final amount or\nballoon payment needs to be done. And if the actual value of the vehicle\nexceeds more than the calculated price of the company, the borrower could use\nthe equity to deposit the new PPC deal. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Things_You_Will_Need_to_Get_PPC_Finance\"><\/span>Things You Will Need to Get PPC Finance <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To avail the PCP finance, you will have to\nprovide necessary information to the dealer, including: <\/p>\n\n\n\n<ul><li>Personal details<\/li><\/ul>\n\n\n\n<ul><li>Employment history <\/li><\/ul>\n\n\n\n<ul><li>Account details<\/li><\/ul>\n\n\n\n<ul><li>Credit report <\/li><\/ul>\n\n\n\n<p>Make sure that you have all the documents\nwith you before applying for the loan because lacking any one of these could be\nthe reason for the rejection. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Additional_Payment_That_You_Might_Have_To_Pay\"><\/span>The Additional Payment That You Might Have To Pay <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Apart from the deposit, monthly installment and balloon payment (optional), there are certain payments you might have to make including: <\/p>\n\n\n\n<p><strong>Extra Mileage Charges<\/strong>: When you get the car with PCP finance, the company will provide you with an annual mileage limit that you could use in the car. Going beyond that means additional charges, so ensure that you get the deadline that you can manage. <\/p>\n\n\n\n<p><strong>Damage Charges<\/strong>: You must understand that until you clear the balloon payment, you don\u2019t owe the car. In the meanwhile, if the vehicle receives any damage, you will have to pay for it. The dealer might accept slight wear and tear in the car, but if it is not in the sale condition, you will be charged with the damage penalty. <\/p>\n\n\n\n<p>So, this was everything that you need to\nknow about PCP finance and how it can help get your dream car.&nbsp; Before going with it, make sure that you have\nfully understood this and take the final decision. <\/p>\n\n\n\n<p><strong> <\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Are you planning to buy a car, why not go with PCP finance that could be an affordable option for you. Read this blog to know more about this financial product<\/p>\n","protected":false},"author":1,"featured_media":1441,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[156],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/posts\/1440"}],"collection":[{"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/comments?post=1440"}],"version-history":[{"count":2,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/posts\/1440\/revisions"}],"predecessor-version":[{"id":1443,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/posts\/1440\/revisions\/1443"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/media\/1441"}],"wp:attachment":[{"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/media?parent=1440"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/categories?post=1440"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/tags?post=1440"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}