A Personal Contract Purchase (PCP) car finance agreement can last anywhere between one year and seven years depending on the vehicle you are buying, the amount that you have agreed to pay each month, and your own financial circumstances. When the time comes that a PCP agreement is concluding, it is important to make the right decision for yourself and your circumstances in terms of subsequent action. You will have a better chance of achieving this if you know well in advance what your different options are after a PCP plan ends, which is what we will be covering below.

3 of the best pcp end of contract options

The first option after a PCP is to keep the same car, thus taking ownership of the vehicle. To do this, you would need to make one final balloon payment (for a figure that will have been agreed upon by all parties in advance of the deal beginning), and once you have done that, the car officially belongs to you. Whether you decide to keep it for a month, a year or a decade, at that stage the vehicle is officially your property. If you have become attached to this particular car, then this would be the most suitable option for you to take.

The second option after the PCP concludes, if you will feel at the end of the plan that you have utilised the vehicle to its full capacity, and that it is time to move on. Therefore, switch over to a different vehicle. This would require the creation of a new finance plan, but one which would run under very similar terms and conditions because it would be a swap over to a car that was of a similar model, price, age or condition. You couldn’t switch over from a miniature vehicle to a brand new SUV car for sale and expect to pay the same, but to ensure minimal disruption and change to the T&C’s, you could change over to a vehicle that shared many of the same traits. This is recommended for those who wish to change their car but still require a motor relatively quickly to go about their everyday business. Talking about switch over; systems in the UK allow just about everything to quickly switchover. From utilities and even in the services industry since information is accessible and digital as we all say.

Where do they take these cars? Once you hand back the car to the original dealer, the vehicle on finance might be auctioned off to cover the balloon payment that it was assumed the driver would make.

The final option after the PCP ends is to return the vehicle, thus ensuring that no balloon payment is required, but with you simply moving on in the short-term without a car. No more waterproof contracts to tie you down for years. This allows you to take a step back and take more time to consider your options when it comes to the next vehicle that you will purchase. The potential problem with option two is that you might rush into a new deal just to have a car to drive around in, but is it really the best one that you could buy? By completing the deal and then having some time to analyse what other cars are available, though, you are not only allowing yourself to build up some funds for a little while, but it also means that the next vehicle you do end up buying should be the most suitable for your requirements.

These are the main options when a PCP plan comes to an end, but you can find out more about all three at www.pcpmissold.co.uk.