So, you have come to the end of your Personal Contract Purchase (PCP) agreement, and you are now thinking about what your next move should be. You may find that you are unsure what would be best for you, and so in this article we have outlined the main options that you will have to choose from when your PCP officially ends.
The first, and probably the easiest, option is to make the required balloon payment that would allow you to keep the vehicle. You will have completed all of the regular monthly payments, but the final balloon payment is a larger amount that ultimately switches the ownership of the car over to you. This means that you will not have to change course, and if you have found that you really like the vehicle and you would want to keep it, then making the balloon payment and officially buying the car on a permanent basis is the way to go.
Alternatively, perhaps 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. If that is the case, then you could choose to give the car back to your original dealer, who at that point will auction off the vehicle to cover the balloon payment that it was assumed the driver would make. The vehicle does have to meet certain criteria with regards to its condition, but it is a decision you are fully entitled to make, and you may recoup some of your money back depending on how much the car is sold for.
The option that the majority of motorists opt for, though, is a part-exchange. After all, not all drivers may wish to keep the vehicle, but they also need to make sure they have a different car in its place. To make for an easier switchover, the part-exchange method is recommended. This will see you send the car back to the dealer in exchange for a new vehicle, with you paying the difference in value where applicable. Of course, you are hoping to upgrade, but if you are looking to downsize or to save money, you may even receive some form of payment as part of the process, depending on whether or not the car you are sending back is worth more monetarily than the vehicle you will be receiving.
These are the main options you have at the end of a PCP agreement. You can find out more here www.pcpmissold.co.uk.