Personal Contract Plans

A Personal Contract Plan is one of the best ways to buy a used car. A Personal Contract Plan is an innovative car finance deal that's growing more and more popular with car buyers.

A Personal Contract Plan is a great way of making your money go further when you buy a used car. As your car loan payments are considerably reduced, you'll find you can get a higher-specification car for the same amount of money you'd be spending with a conventional car finance deal. The monthly payments are usually lower than with Hire Purchase or a Personal Loan. You could also trade your old car in as a deposit.

A Personal Contract Plan car finance deal defers a large portion of the purchase price of the car; a portion equivalent to the anticipated minimum value of the car after the term of the Personal Contract Plan has ended. So, because your car loan payments don't have to cover the full value of the car, you can get far more for your money and drive a car that would otherwise be well out of your budget.

Once the Personal Contract Plan comes to an end, you have a number of options open to you to repay the outstanding finance. You can part-exchange the car for another used vehicle if you wish, arrange another car finance deal if you want to keep the car, or you can sell the car yourself to pay back the deferred amount.

What's more, if your vehicle is worth more than the sum the car finance company anticipated, when you sell the car you can keep the excess to use as a deposit on your next car.