Personal Contract Purchase - End of Contract

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Personal Contract Purchase - End of Contract

Once a personal contract purchase plan has finished, the buyer of the vehicle has several options. These should have been outlined before the plan started, but the basic options at the end of the contract are as follows:

The personal contract purchase plan holder can pay off the Guaranteed Future Value (GFV) and take the car. This means that the plan holder owns the car outright, with no money outstanding owned to the provider.

However, often the balloon payment needed to secure the vehicle outright can be beyond the means of many consumers. Similarly, the plan holder may wish to take a different route, such as getting a new car.

Another option is to return the car to the Personal Contract Purchase provider. In this instance, depending on the provider, the plan holder will not get any of their repayments back, and they will also lose their deposit.

Those plan holder who wish to can also use the difference between the GFV and the value of the car to make a deposit on a new car.