What is PCP and how does it work?
A PCP deal is basically a loan to help you get a car. But unlike a normal personal loan, you won't be paying off the full value of the car and you won't own it at the end of the deal (unless you choose to). The deposit (usually around 10% of the cars price).
Monthly repayments are dictated by the length of the term of the plan, deposit, amount, annual mileage, and the cars total value.
At the end of the agreement there is an optional final payment, this is a pre agreed figure which is determined in the PCP contract prior to starting the agreement, this figure is set out by the finance company which predicts the cars worth at the end of the agreement.