There are many ways to help finance the purchase of a car but if you are looking for a flexible and inexpensive means of buying a new Skoda, PCP or Personal Contract Purchase could prove to be your best available choice. Using this method you effectively defer a large amount of the payment until the end of the contract term that you agree and then make lower monthly repayments. Once you reach the end of your loan term it means that you will then have the option to change car or to make the final payment and purchase the car you have been driving.
Under a Personal Contract Purchase, the buyer makes an initial payment or deposit, followed by low monthly repayments followed by the option to buy the car outright at the end of the contract by paying the Guaranteed Future Value (GFV). The GFV is determined by the lender at the beginning of the contract deal.
In this scheme, your monthly repayments effectively cover the cost of depreciation over the time that you borrow the car. At the end of the contract, what is left to pay should equate to the actual value of the vehicle at that time, according to its age and mileage. The lender will determine the Guaranteed Future Value that you need to pay to take full ownership of the vehicle according to the terms of the loan and the agreed mileage that you will cover.
Once the end of the contract is reached, the actual vehicle of the value may differ to the amount you have to pay and there are four options open to you that ensure you can make the most of your PCP agreement. You can return the car, sell it and keep any profit, pay the remainder and keep the car, or exchange for a new car.
With Skoda PCP it is possible to benefit from a brand new Skoda without having to finance a car purchase that totals thousands of pounds in value. Do consider your current circumstances as well as any probable changes that will affect the amount of money you have and the type of car you require in the future.
Visit SkodaMotorContracts.co.uk to enjoy the benefits that a Skoda PCP deal has to offer, and to view the catalogue of new Skodas that they have to offer clients.