18th April 2016
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Reduce monthly payments on a new vehicle by offsetting the final value of the vehicle as an optional final payment with a Personal Contract Purchase at Forest Road Garage

The way people buy cars has changed significantly since I’ve been away from the motor trade with many customers moving away from spending their savings, adding onto their mortgage or seeking a bank loan and instead looking at budgeting a monthly amount for their motoring requirements.

This trend has led to the evolution of the Personal Contract Purchase (PCP) a finance package that reduces the customers’ monthly payment by offsetting the final value of the vehicle as an optional final payment.

A PCP allows the customer to pay a lower than usual deposit to secure their new car, followed by regular fixed repayments over an agreed term. At the end of the pre-agreed term, the customer has the choice to replace the car by trading it in for a new one, retain the car by making one final optional payment * (refinancing is available), or return the car by simply giving it back to the finance company.

The finance company set the level of the optional final payment using industry data, so unlike a standard balloon payment set by a garage the value is deliberately set low so that the customer has equity left in the vehicle at the end of the term, ensuring they wil have enough for a deposit on a new car.

At Forest Road Garage we've taken the concept of the PCP one step further and on most of our new Mazda & Kia range we will pay the deposit for the customer as well. This means that customers can come in and get a new car that suits their monthly budget without having to pay a penny upfront!

For more information contact our sales team.

For more information on Forest Road Garage you can click here to view their feature page on thebestof Guernsey.

About the Author

Tim Smart

Member since: 7th October 2015

I'm co owner of Tapenade Delicatessen, a busy little deli & off licence on the seafront, opposite the Crown Pier. As you'd expect I love food & drink but I'm also a motorbike fanatic and a keen gardener....

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