Personal Contract Purchase offers

Personal Contract Purchase (PCP) is the most popular form of car financing, accounting for roughly 75 percent of new car sales in the UK. It’s flexible, affordable and a good way to pay for a brand-new Fiat or Abarth.

You begin by paying a deposit, which is followed by fixed monthly repayments, the latter of which pay for the car’s anticipated depreciation over the course of the contract.

Before the final payment (the Guaranteed Future Value (GMFV), often referred to as a ‘balloon payment’) is due, you’ll be presented with three options:

1. Own the car outright – make the final payment and the car is yours
2. Select a brand-new Fiat or Abarth model by beginning a new PCP agreement
3. Return the car and walk away, with no more money to pay

Pros

• Flexibility – at the end of the contract, choose between ownership, a new agreement or returning the vehicle
• Low monthly payments compared with Hire Purchase (HP)
• The higher the deposit amount you can afford, the lower your monthly repayments will be

Cons

• If you’re aiming for outright ownership, PCP tends to be a more expensive form of car financing than HP
• You may be liable to pay for excess mileage (the limit is usually 5,000 miles) and/or any damages

Feel free to speak to a salesperson here at BS Marson to discuss further options.