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Personal Contract Purchase (PCP)

This works differently to HP. You make a deposit for the car an make monthly payments for the agreed term of the contract. At then end of the contract you can hand the car back and in most cases owe nothing or pay the balance or the Minimum Guaranteed Future Value (MGFV) which will have been advised up front to purchase the car. Or if the value of the car is higher than the MGFV you can trade it in and start all over again. Don’t forget that you will still need to buy insurance for this vehicle even though you don’t technically own it.

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