There are similarities between a Personal Contract Purchase and a Hire Purchase contract. At Eden Fiat, we are happy to explain the benefits of a Personal Contract Purchase to you, and find the right finance package for you and your motoring desires.
At the start of the Personal Contract Purchase process, you will pay a deposit on the car you have chosen; this can be up to 30 percent of the car price total. This can be paid in a monetary amount, through part exchanging your current vehicle, or through a combination of the two. Following this, you will make monthly payments for an agreed-upon period of between 18 and 48 months.
The unique element of the Personal Contract Purchase is the Guaranteed Minimum Future Value (GMFV). At the beginning of your contract agreement, the predicted minimum value of your car once the contract ends is calculated. The price that you pay monthly is the difference between the initial purchase price and this predicted future value; at the end, you will make a balloon payment in order to settle the amount and bring the agreement to a close.
At the end of the Personal Contract Purchase, you have several options. The car can be returned to Eden Fiat, with no further commitment. You can transfer your Personal Contract Purchase into a Hire Purchase agreement to own the car outright, or you can part exchange the vehicle on another car from Eden Motor Group.
If you have any questions or concerns regarding Personal Contract Purchase with Eden Fiat, feel free to contact us today. Visit us in person to speak to our experienced members of staff, or use our telephone number to make an appointment at a time to suit you. Alternatively, leave your details with us through our online enquiry form, and we will get back to you as quickly as we can.