PCP finance is the most popular form of car finance in the UK today, largely because it’s affordable and flexible. It’s available on both new and used cars.
Simply put down a small deposit, then make monthly repayments over an agreed period with a large portion of the purchase price left over unpaid at the end (this is sometimes referred to as a balloon payment). At that point, you can either pay it off and the vehicle is yours; return the car and walk away; or start a new agreement on a different vehicle.
Marshall Motor Group Ltd is a credit-broker not a lender. We typically receive a finance commission from the lender for arranging finance for you. For further information on our commission arrangements see https://www.marshall.co.uk/fcds
How does it work?
- Simply choose the car (new or used) you like.
- Choose the most suitable repayment period for you.
- Decide on the small deposit contribution that suits you.
- Agree on your anticipated annual mileage.
- You will then be given a Guaranteed Minimum Future Value which becomes your optional final payment.
- This value is guaranteed by the finance provider which is why it is commonly known as a Guaranteed Minimum Future Value.
- The remaining balance is then divided by the term you have agreed to calculate your monthly repayments.
Important information
At the end of your agreement you have three options:
1. If you fancy a change you can simply part exchange your car for a different make/model on a new Solutions contract
2. If you love your car you can pay the option to purchase fee and the optional final payment then take full ownership of the vehicle
3. If you don't want to upgrade or keep it, as long as it's been loved, you can simply give it back. (fees may be payable)
It is important that you keep up to date with your monthly repayments, so please contact your lender if you are having any difficulties as the vehicle maybe at risk if you don’t.
You may end your agreement earlier than the full term. However, depending how far you are in to your agreement will affect the final amount left to pay.
If you exceed agreed mileage at the start of your agreement and intend to return the vehicle then excess mileage charges will apply.
Keep the vehicle in good condition as this will affect the value of the vehicle. You may be charged for any damage that goes beyond fair wear and tear.
PCP may not be suitable if you want to settle the agreement early or if want to own the vehicle at the end of the term and may have difficulty in making the balloon payment. Smaller deposits work better with a PCP.
Arranging Finance
Marshall Motor Group Ltd is not independent as we have pre-arranged contractual relationships with a limited number of lenders. We act as agent of the lender. Our relationships include the brand finance provider, Santander Consumer (UK) plc and Evolution Funding Limited. We do not conduct a market appraisal and we do not choose from a panel of lenders. We will only submit a finance application to a prospective lender with your consent and the information you provide to us must be accurate. The lender will carry out an affordability assessment and a credit check before making an offer of finance to you. Each finance application will leave a footprint on your credit file. Finance is never guaranteed and is always subject to status and affordability. Terms and conditions apply. We will provide you with information but we do not offer financial advice and we do not make recommendations on any financial product. We operate a non-advised sales process. Please read all terms and conditions and other documentation that we provide to you carefully in order to decide whether what is being offered is suitable and meets your needs. The financial products that we have available may vary from time to time and include Hire Purchase, Conditional Sale, Fixed Sum Loan, PCH and PCP. Each financial product has different features, terms and conditions. If you require any further information about our financial products and services, please let us know.
Marshall Motor Group Ltd are a credit-broker not a lender. We typically receive a finance commission from the lender for arranging finance for you. For further information on our commission arrangements please read our Finance Commission Disclosure Statement https://www.marshall.co.uk/fcds or ask for details.
