PCP - Personal Contract Purchase

Personal Contract Purchase (PCP) is a new product developed to enable individuals to finance their vehicle whilst still retaining some or all of the benefits associated with a company car.

A PCP facility can also be offered to those employees not normally entitled to a company car. A Low deposit followed by a fixed monthly charge means that a personal contract purchase is easy to budget for and it is possible to provide all-inclusive maintenance and breakdown packages.

Tax Implications of a Personal Contract Purchase

As a Personal Contract Purchase agreement is written in your name the normal "benefit in kind tax liability" doesn't apply.

Who Owns The Vehicle at the End of a Personal Contract Purchase Agreement?

The vehicle is supplied for a set period of time at a fixed rental. At the end of the PCP agreement the driver may purchase the vehicle by paying the balloon payment (guaranteed future value) or simply return it to the finance company.