PCP was designed specifically to be a personal contract for private individuals. Seen as a way to avoid the depreciation trap, a PCP agreement allows you the option to setup a contract with monthly payments. A number of factors are considered for the monthly contract price to be calculated: How much the vehicle costs new, how much deposit paid, how long the contract will be over (usually 24-42 months), how many miles you are intending to do and a GFV (Guaranteed final value) is then generated (sometimes this is known as a balloon payment).

When your agreed contract term comes to a close you have 3 options:

  • Pay the GFV (Guaranteed final value) and take the car away - it's yours
  • Hand back the car and walk away - but you won't get any of your deposit or repayments back
  • Use the GFV of the car as a deposit towards your next car

We aim for you to be able to use the difference between the GFV (guaranteed future value) and the actual real value of the car as a deposit towards your next car.

The benefit of PCP is it's a fixed monthly payment that is usually lower than any other form of finance. Call us today at Harbour Garage (Whitstable) Ltd, Kent on 01227 261477 to pre-book your test drive or alternatively use the contact form.