What To Check When Buying A Car On PCP

When you are thinking over a Personal Contract Purchase/Personal Contract Plan (PCP) plan, and you are considering whether to go ahead with it, you shouldn’t just be focused on the car and how much you’re paying on a monthly basis. Indeed, there are a large number of factors that you must bear in mind before giving such an agreement the go-ahead, some that are easy to forget but could prove to be crucial in the long-run. We’ve decided to spotlight a number of these aspects in today’s article.

The first thing concerns mileage. Some PCP plan agreements will be determined by a set number of miles that you can clock up on a monthly basis. In theory, this sounds feasible, but what if you have a job where you have to drive 20-30 minutes to and from your office? Over the course of a month, this can result in many hours of driving, and that doesn’t include leisure activities, shopping trips, or the school run if you have kids. And if your PCP plan only allows you to drive a set number of miles, this could lead to you paying out a lot more money in the long-run, so it’s vital to work out a proper and appropriate mileage for your plan, and to not agree to one that could be detrimental.

The second thing is somewhat related: penalties, as in financial penalties. Mileage could be one instance, but there are also late monthly payments, any damage to your vehicle, insurance complications and so on. Again, it’s crucial to be mindful of what penalties are in place, and what would trigger them, because it will be too late if you make a simple mistake that ends up hitting you hard in the wallet. Of course, the hope is that you’ll never have to pay penalties on top of what you’re already forking out, but you need to know exactly what you would have to pay and, more importantly, what penalty situations you should try to avoid in the first place.

The final point is about costs, and this seems like something obvious that you would be aware of. But here, we’re talking about the hidden payments, those that aren’t immediately noted when you’re told what the monthly charge for the vehicle will be. This could be a deposit, it could involve an additional loan, it could be the MOT checks that the car will require, and of course the regular petrol/diesel costs you will be paying depending on how often you’ll be driving and, consequently, how much fuel you’ll be using. Either way, you should factor in all costs, not just monthly payments, in order to keep on top of what you’ll be paying and to work out if, after you include all additional payments, whether the car is truly worth paying.

So, these are just some of the main, yet somewhat hidden, things that you should check before entering a PCP agreement. Read more by visiting our news page.

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