The monthly payments are not subject to VAT, however if you do take out the optional service package then you will have to pay VAT on the service costs.
PCP is ideal for any individuals in the Armed Services or Police, Serving or Retired, along with NHS Staff, Fire Brigade Personnel and Teachers - who would like options at the end of their finance agreement. PCP customers make an initial payment when they first take out the contract, then pay fixed monthly payments and finally have an Optional Final Payment (OFP) at the end at the end of the contract which is also referred to as the GFV (Guaranteed Future Value).
You can trade in or sell your vehicle at a dealership and take another vehicle from them. If the trade in value is larger than the OFP you will be able to use the difference towards a deposit on a new vehicle. Or, you can simply return the vehicle to the funder, as long as you have not exceeded the mileage and the vehicle is in an appropriate condition for its age there will be no charge. Finally, you can keep the vehicle either by paying the OFP in full or you will find that most companies offer the opportunity to re-finance the OFP.
You can find out more about Personal Contract Purchase by following the link.
* All vehicle images and car descriptions on this site are for illustration and reference purposes only and are not necessarily an accurate representation of the vehicle on offer.
T: 01522 5000 55
Motor Source Group
PO BOX 1271
Forces Cars Direct Limited TA Motor Source Group are a credit broker and not a lender, we are authorised and regulated by the Financial Conduct Authority. Registered No : 672273. We act as a credit broker not a lender. We can introduce you to a limited number of lenders who may be able to offer you finance facilities for your purchase. We will only introduce you to these lenders.
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