Personal Contract Purchase

You pay a deposit (either cash or your trade-in), then make monthly repayments which pay off roughly half the amount of money borrowed and the interest on all of it. At the end of the two or three years, you have three options; pay off the remaining lump sum and keep the car; use any equity you have in the car (the difference between the lump sum to clear the debt and the trade value of the car) as the deposit on another PCP on another car; or simply walk away with no debts but no car.

PCPs are best for people who are in steady, secure jobs, who are happy leasing rather than owning, and who don't mind both the dealers and the finance companies profiting from this. If you're worried about your job, you can take out redundancy insurance on the debt, but this is expensive and makes the car even more expensive than the finance already makes it.

Always remember, if the market slumps against the price you paid for your car on a PCP, as has happened in thousands of cases over the past few years, you may be left with no equity in it to finance the deposit of your next PCP. You will also be financially penalised if you return the car with excess mileage or damage.

www.newcar4me.com has to be the web's most advanced Personal Contract Purchase (PCP) site. With 45 manufacturers listed and over 5500 models, technical specification and option data for every model and the ability to build your own finance quote, this is the only car website you will need. Not only will you find low rate finance PCP and HP deals, you will also be offered up to 30% discount on certain models making new cars much more affordable. We have new car deals from as little as £99 a month! If you want more info simply view the site www.newcar4me.com now or call 0870 990 5583.