Why choose Solutions Personal Contract Plan?
You could be allowed to drive a higher-spec car for a similar monthly budget that you were planning to spend compared to leasing or contract hire:
▪ Drive a new car more often thanks to shorter replacement cycles.
▪ Choose whether to buy the car at the end of the agreement.
▪ Takes away the worry about depreciation, because a pre-agreed proportion of the vehicle value is left until the end of the agreement.
Get 0% APR* across the CUPRA range with Hire Purchase, up to a maximum term of 60 months. For more information speak to your local CUPRA Retailer.
⁵ Hire Purchase. 18s+. Subject to status. Indemnities may be required. Subject to changes in vehicle or equipment prices. May be varied or withdrawn at any time. Freepost SEAT Financial Services.
³ CUPRA e-Care Essentials Plan covers first two years servicing limited to 1 x inspection service, 1 x Brake fluid change and 1 x Pollen filter replacement. Excludes Petrol and PHEV vehicles. Servicing must be carried out at a CUPRA Authorised Repairer, in line with the requirements of the service schedule. Additional work, including wear and tear, is excluded. Freepost SEAT Financial Services.
⁴ CUPRA Care Plan covers first 2 consecutive services with 1 Pollen filter replacement. Excludes electric vehicles. Servicing must be carried out at a CUPRA Authorised Repairer, in line with the requirements of the service schedule. Additional work, including wear and tear, is excluded. Freepost SEAT Financial Services.
A Personal Contract Hire (PCH) agreement allows you to drive a new CUPRA through a longer term rental agreement.
▪ Fixed monthly rentals with flexible upfront payment
▪ Avoid the worries of car ownership - it's a rental
▪ Return the vehicle at the end of the agreement
▪ Option to purchase the CUPRA e-Care Essentials service plan from £6.21 a month^ for electric vehicles or CUPRA Care service plan for £14.54 a month^^ for petrol and PHEV vehicles.
A Business Contract Hire (BCH) rental agreement that allows you to drive a new CUPRA without needing to own it:
▪ Fixed monthly rentals
▪ Avoid the worries of car ownership
▪ Return the vehicle at the end of the agreement
▪ Option to purchase the CUPRA e-Care Essentials service plan from £6.21 a month^ for electric vehicles or CUPRA Care service plan for £14.54 a month^^ for petrol and PHEV vehicles.
Personal Contract Purchase (PCP) is a finance product that allows you the opportunity to buy a new or a used car.
It is similar to a Hire Purchase agreement as you will usually pay an initial deposit, followed by monthly instalments over a term typically between 18 to 48 months.
What makes PCP different to Hire Purchase (HP) is that your monthly instalments are paying off the depreciation of the car, and not its entire value, over the course of the term. Then, when you get to the end of your agreement, there is a final, balloon payment that must be made if you want to keep the car. The balloon payment is often referred to also as the Guaranteed Future Value (GFV).
When you have chosen your vehicle, you will then agree your annual mileage and decide on the agreement term with one of our Business Managers.
We will then determine the Guaranteed Minimum Future Value (GMFV) of the vehicle at the end of the agreement and work out a deposit and monthly amount that works for you.
At the end of your agreement you will then have three options:
Return – Simply return the car the back to us
Retain – Keep the car by paying the optional final payment
Renew – Trade it in for another car
For a quotation, help, or advice contact us and ask to speak to one of our Business Managers.
You can normally settle your agreement early by asking the finance company to provide you with a settlement figure. However, the finance company will require you to pay off the difference between what your car is worth, and what you still owe and there may be a difference which is known as negative equity. On the other hand, you may find that at the end of your term your car is worth more than the Guaranteed Future Value, which means you will have some positive equity to contribute towards your next car.
Hire Purchase is a way to finance buying a new or used car. You will normally pay an initial deposit and will pay off the entire value of the car in monthly instalments. When all the payments are made, the Hire Purchase agreement ends, and you own the car outright.
The short answer is yes, you can end your finance early. There are different provisions within each finance agreement that allows you to do just that. If you have got through two-thirds of the way through your finance agreement, the options to end the finance agreement early open up.
For a Hire Purchase agreement, there is an option of paying it off early through a settlement fee. A settlement fee covers the cost of any remaining unpaid instalments and interest payments remaining on the agreement. Once the settlement fee is paid, you take full ownership of the car early.
Under a Personal Contract Purchase agreement, you can also pay a settlement fee for bringing the agreement to an end early. After that, you can choose to hand the car back or you have a second option. Through a PCP agreement, you can take full ownership of the car by paying off the remaining Guaranteed Minimum Future Value also known as a balloon payment.
Also know as PCH or personal leasing, Personal Contract Hire
is becoming a popular alternative among car users and is in essence a long-term
rental agreement. You pay agreed monthly rentals over an agreed term (usually 24 to 48
months) and then return the vehicle at the end of the agreement, with no worries around depreciation, selling or disposal.
Once you have decided on your next vehicle, a fixed monthly rental will be calculated by taking the following elements into consideration:
Once this has been calculated and agreed, you will pay an initial upfront rental and then pay a series of fixed monthly payments throughout the agreement. Once the agreement has finished you return the vehicle to the provider, allowing you to lease or purchase another vehicle of your choice. As long as you haven’t exceeded the agreed mileage or caused any excess damage, you will have no further obligations once the contract ends. With PCH you will never own the vehicle or have the option to buy.
