PERSONAL CONTRACT PURCHASE (PCP) EXPLAINED
A flexible finance loan that defers part of the cost of the car until the end of the agreement.
WHAT IS PERSONAL CONTRACT PURCHASE (PCP)?
Personal Contract Purchase (PCP) is a flexible loan where a portion of the cost is deferred until the end of the agreement, providing you with the benefit of lower fixed monthly payments. The deferred amount is known as the Optional Final Payment.
PCP is best suited to people who are budget conscious and like to plan outgoing payments with certainty.
HOW PERSONAL CONTRACT PURCHASE (PCP) WORKS
1: PAY A DEPOSIT
Select the initial deposit you wish to pay, if any at all.
If you choose to pay a deposit, you can either pay in cash or trade in your existing vehicle (part exchange).
2: SET YOUR TERMS
Choose how long you would like the agreement for and your annual mileage allowance.
This will determine your Optional Final Payment.
3: PAY MONTHLY PAYMENTS
Make regular monthly payments to repay the balance and interest.
The interest rate is fixed which means you pay the same amount each month.
4: DECIDE WHAT TO DO AT THE END OF THE CONTRACT
At the end of the agreement you have three available options.
RETAIN THE VEHICLE
Simply pay the Optional Final Payment and you will own the vehicle.
RETURN THE VEHICLE
If the vehicle is in good condition and within the agreed mileage terms, you can return the vehicle with nothing more to pay.
RENEW THE VEHICLE
Choose another vehicle, using any excess part exchange value that is above the Optional Final Payment towards your deposit.
KEY BENEFITS
Low Monthly Payments
As some of the cost is deferred until the end of the agreement, PCP offers lower monthly payments
Flexible
Flexible end of contract options giving you the choice to own the vehicle, return the vehicle or renew with another vehicle.
Low Upfront Deposit
Low deposit requirements making it easier to get into your new car with less money upfront.
OTHER THINGS YOU SHOULD KNOW:
- At the end of the agreement it is possible there may not be any equity (the difference between the final payment and the value of the vehicle).
- A higher deposit means you will have lower monthly repayments. However it will not change the Optional Final Payment set at the start of the agreement, or the valuation at the end of the agreement.
- If you decide to return the vehicle at the end of the agreement and it has covered more miles than agreed, you will be required to pay a charge for excess mileage. In addition, if you have not kept the vehicle in reasonable condition for its age and mileage you may be charged a refurbishment cost.
- Genesis Finance will own the vehicle until the Optional Final Payment including any interest payable has been made. If you do not keep up your repayments, we may take steps to recover the money that you owe us, which may include repossession of the vehicle.
- This type of finance agreement is not available to corporate entities, e.g. limited companies, PLCs or limited partnerships.
This type of agreement is covered by the Consumer Credit Act 1974, which means:
- You can pay off lump sum amounts during the agreement.
- You can settle the agreement early by repaying the required amount.
DOWNLOAD OUR PCP PRODUCT GUIDE
Our product guides are downloadable as a PDF via the link below.
LATEST OFFERS
With low rate finance available across the Genesis range, it's never been easier to find your perfect Genesis.
FREQUENTLY ASKED QUESTIONS
The Optional Final Payment, also referred to as the Guaranteed Future Value (GFV), is an optional lump sum that you can pay to own the vehicle at the end of your agreement.
The Optional Final Payment is calculated at the start of the agreement and is determined by the annual mileage and duration of the agreement.
Personal Contract Purchase might be a good option if you want lower monthly payments and flexibility at the end of the agreement.
Its ideal for those we prefer to change cars frequently or are unsure about long-term ownership.
No, Genesis Finance will hold title of the vehicle until you have made all monthly payments and the Optional Final Payment.
When applying for finance you will be required to supply certain personal information, as well as to confirm your identity.
You will need to provide a full UK driving licence. We may also ask you for further proof of your address dated within three months of the submission of your application. An acceptable proof of address includes a bank or credit card statement, utility or council tax bills, or mortgage statements.
Excess mileage charges will apply at the end of your agreement where you have exceeded your agreed mileage limit. In such cases, a pence per mile charge will be applied to the number of miles you have driven above the allowance stated in your agreement documentation.
| Account Management Fees | Empty |
|---|---|
| Copy statement of account | £12.00 |
| Change of payment due date* | £25.00 |
| Change of vehicle registration plate | £30.00 |
| Collection of vehicle upon voluntary termination of agreement | £70.00 |
| Transfer of agreement fee** | £150.00 |
| Arrears Management Fees | Empty |
|---|---|
| Monthly arrears fee*** | £35.00 |
| Internal collection agent visit | £50.00 |
| External collection agent visit | £250.00 |
* One change of payment due date is allowable free of charge any time during the agreement.
** Only applicable for agreements not regulated by the Consumer Credit Act, i.e. transfers from one limited company to another limited company.
*** When your payment is made late and for every subsequent month that your agreement remains in arrears, limited to 3 in any single defaulting period. The charges detailed within this document are correct as at 30th July 2014. Genesis Finance reserves the right to amend these fees at any time.
FIND YOUR RETAILER
Enter your postcode and find your local Genesis retail partner by using the online locator.