Drivelease Personal Contract Purchase

Options of Drivelease Personal Contract Purchase

In short Drivelease Personal Contract Purchase is very much the same as a personal contract hire agreement – but with one key and important difference.

 

At the end of the contract, there is an optional balloon payment that you can choose to pay in order to take ownership of the vehicle. This amount is determined at the beginning of the agreement and allows you to keep the vehicle if you so choose.

 

Alternatively as with personal contract hire, you could return the car to the leasing company and walk away – subject to fair wear and tear and mileage.

 

Another option of course would be to part exchange the vehicle for a new model and use the equity (if any) as a deposit on the latest luxury, prestige or performance car on the market.

Considerations to Drivelease Personal Contract Purchase

Monthly payments are based on the deposit amount and the difference between the retail value of the car and the residual value – i.e. the estimated future value of the vehicle after depreciation is taken into account. Therefore, the more the vehicle holds its value, the better your personal contract purchase deal will be as that will reduce your monthly payments.

 

A mileage limit will apply to all personal contract purchase deals. This is because the leasing company will use the mileage limit to determine the vehicle’s depreciation and therefore its residual value. So it’s important to be accurate when working out your expected annual mileage – exceeding the agreed limit will lead to financial penalties at the end of the agreement if you choose to hand back the vehicle.

Advantages to Drivelease Personal Contract Purchase

There are many advantages to Drivelease Personal Contract Purchase including:

 

Fixed prices: You know exactly what you have to pay each month, which is ideal for budgeting.

 

Low initial deposit: Usually only a small deposit is required, typically lower than a HP agreement would require.

 

Refinancing option: If you prefer, you can refinance the balloon payment at the end of the contract.

 

Greater flexibility: Drivers who like to change their cars every two or three years – PCP offers a far easier way to do so.

 

Option of maintenance packages: Most personal contract purchase agreements will include maintenance packages that can range from basic servicing to total vehicle management.

 

No risk of depreciation: You don’t have to buy the car at the end of the contract if you don’t want to. You can simply hand the vehicle back and walk away subject to fair wear and tear and mileage.

 

Wider choice of vehicles: A key benefit to personal contract purchase  that it gives you access to previously unaffordable luxury, prestige and performance vehicles due to the low deposit and low monthly payments.

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