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PCP & Finance
Motorlogix has partnered with several major lenders to ensure we can combine a great deal on your car with affordable finance. We can still arrange the finance even if you source the vehicle elsewhere..!
PCP (Personal Contract Purchase)
PCP allows you to pay a variable deposit, defer part of the cost of the car into an optional balloon payment, then spread the remaining cost over a series of monthly payments. It also gives you the flexibility of keeping the car or handing it back at the end of the contract. A PCP can also be combined with an optional all-inclusive maintenance and breakdown package if required. There are 3 elements:
Initial Deposit - from £0 up to a maximum of 40% of the purchase price (depending on lender) and is the amount you agree to pay the Dealer as a down payment for the car. You’ll be asked to pay this amount to the Dealer a few days before taking delivery, less any holding deposit you paid to the Dealer when you initially placed the order.
Residual Balloon - a fixed amount calculated based on the length of finance contract (12-48 months) and the mileage you cover. This is the amount you will need to pay the finance company at the end of the contract IF you wish to keep the car. It may also be referred to as a Guaranteed Minimum Future Value (GMFV).
Monthly Payments - calculated by taking the amount you are borrowing (i.e. the cost of the car less deposit) adding the interest and then subtracting the Residual Balloon. The resulting figure is then divided by the number of months you financing the car over. You can adjust the deposit amount to reach the monthly figure you are comfortable with. The higher the deposit the lower the monthly payments and vice versa.
At the end of the PCP contract you have 3 choices:
- Pay the Residual Balloon and keep the car
- Sell the car (either privately or in part-exchange), then immediately settle the finance and retain any balance to put towards your next car
- Return the car to the lender and walk away (only worth doing if the car is worth less than the residual balloon)
N.B. In our search results we feature an example monthly PCP price which is based on a 36 month contract, a 10% deposit and 10,000 miles per annum. If you configure a car on our site, you can use our PCP calculator to change the finance term, deposit amount and annual mileage.
Personal Finance
We are working to bring on board a variety of lenders to offer favourable lending rates on personal loans to Motorlogix customers. In the meantime, if you are looking to borrow money to buy your car outright then our team will be happy to recommend various lenders who may be able to assist you.
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