Personal Contract Purchase (PCP) car finance is a great way to buy your new car for affordable monthly payments over 2-5 years. PCP deals are flexible by nature too, so you can choose whether you want to own the car, part-exchange it or hand it back at the end.
How does PCP finance work on a car?
PCP splits the price of the car into affordable chunks; a deposit, monthly payments, and an optional final payment. You also have until the contract ends to decide whether you want to buy the car or not. But be aware, with PCP the loan is secured against the car.
What are the negatives of PCP?
You will have to make a decision at the end of the contract as to whether you wish to sell the vehicle, return it or keep it. You must have fully comprehensive vehicle insurance. A charge can be made for damage to the vehicle (not fair wear & tear)
Who pays for repairs on a PCP car?
Do I Have to Pay for PCP Car Servicing? With Personal Contract Purchase and Hire Purchase car finance deals, you have to be the one to spend on car servicing and maintenance because these are not included with this type of car financing.
Is PCP finance a good idea? – Related Questions
What happens if your engine blows on a financed car?
“If your engine blows up on a financed car, you’re still on the hook for the payment. Unfortunately, your car insurance won’t pay for the damages either, as even full-coverage policies won’t cover this.
Do you have to pay for MOT on a lease car?
If you’re leasing your car for three years or less, you won’t need to worry about getting an MOT for your lease car. However, if you’re leasing for any longer than this then it will be your responsibility to ensure your car is covered by a valid MOT on the year of its third birthday and annually thereafter.
Does car insurance cover mechanical problems?
Car insurance doesn’t typically cover mechanical issues unless they’re related to a covered peril. Covered perils include car accidents, hitting an animal, or an object like a tree branch falling onto your vehicle. Car insurance will cover this type of damage if you carry collision and comprehensive coverage.
What if repairs are more than car is worth?
Know your car’s value
Note that most standard auto policies will not pay to repair a vehicle if it is “totaled”—that is, if the repairs cost more than the cash value assigned to the car. It is up to your insurer to decide whether to pay for repairing your car or to declare it a total loss and pay you its book value.
Is it worth repairing a car after an accident?
Many times, fixing your damaged car will be the best option – especially if the repairs will be covered by your auto insurance. Buying a new car can be costly, leaving you with five or more years of debt, while getting it repaired (depending on the damages) might cost you a few thousand dollars.
Why am I so tired after a car accident?
Fatigue is a commonly reported symptom reported after an automobile accident. Mental fatigue is often a symptom of a post-traumatic brain injury that may occur as a result of an automobile accident.
How much does a car lose in value after an accident?
When you see the CarFax or CarCheck research report you will know if your vehicle was in an accident and you will have to disclose the accident and repairs made when you sell your car. The loss of value is in many cases between 40 to 60 percent, money you will not get when you sell or trade it in.
Can I take my car to the dealership after an accident?
You will be able to trade in a car that has damage but the more severe the damage, the less likely you are to find a dealer that is prepared to do so. Severe accident damage and vehicles with problematic mechanicals will not be accepted by the majority of dealerships.
How do I return a car I can’t afford?
If you simply can’t afford your car payments any longer, you could ask the dealer to agree to voluntary repossession. In this scenario, you tell the lender you can no longer make payments ask them to take the car back. You hand over the keys and you may also have to hand over money to make up the value of the loan.
Can I return a faulty car on finance?
Can I return a car on finance if it’s faulty? If you’ve bought a car on finance and it is faulty, you’ll need to report the issue to the finance company that your agreement is with. This will apply whether your agreement is personal contract purchase (PCP) or hire purchase (HP).
Can I trade in my car if it has dents?
In many cases, yes! In fact, your trade value might be higher if you trade your car in with the body damage unrepaired. Not only can the dealer see the problem as it is, but they can also profit from doing the repairs themselves.
At what mileage should I sell my car?
30,000-40,000 miles: Most manufacturers’ general warranties expire in that range, and the first major maintenance is usually due. Selling before reaching those benchmarks may get you the best price for your car.