What ever type of car you have set your eyes on, whether used or brand new, one of the best options would be what is known as PCP or the Personal Contract Purchase. The Personal Contract Purchase is currently a hot choice because of the flexibility that it gives the individual who applies for it a guarantee on the depreciation of the car, plus amazing options towards the end of the payment contract period. Before you completely pay off the total monthly amortization of your PCP loan, you will be given the option to either get a brand new car where a good share of what you have already paid is deducted from the price of the new car of your choice and you just continue the monthly payment for this new acquisition, or if you feel attached to the car that you have and you feel very comfortable driving it, you can immediately purchase the car by paying a set amount, an amount that was agreed upon at the onset of the PCP car finance loan agreement, and drive away with that car which is now totally yours. Or, if you wish to buy another car from a totally different dealer, then you can just return the car without paying anything at all.
Originally, the Personal Contract Purchase was formulated as a private contract for certain individuals and when one enters into such an agreement, the contract between the buyer and the financer is deemed as a conditional sale agreement under certain stipulations which both the buyer and lender consented to and the buyer automatically becomes protected based on two consumer laws: the Financial Services Regulation 2004 and the Consumer Credit Act 1974.
The Personal Contract Purchase is an ingenious scheme which protects the buyer from the loss of the value of a car while in the process of paying for it because he is given the choice of either totally buying out the car at the completion of the monthly payment or return the car and opt for a new one, and then continue the payment with the just recent car possession.
