The key difference between PCP and a standard Conditional Sale agreement is that rather than paying the sum of the entire vehicle over the duration of your agreement and owning it at the end, you have the option to give back your vehicle at the end of your term, or even replace it for a different vehicle on a new finance plan.
The Retailer will calculate an Optional Final Payment before your contract begins, which is a guaranteed figure and therefore remains fixed throughout your term. This Optional Final Payment is a forecast of the vehicle’s worth at the end of your finance term.
When calculating your monthly payments, the Optional Final Payment is then deducted from the cost of the vehicle, which means that your monthly payments in a PCP agreement are always likely to be cheaper than in a Conditional Sale agreement.
At the end of a PCP finance term, you have three options with Vauxhall.
| Personal Contract Purchase (PCP) | Conditional Sale | Personal Contract Hire | |
|---|---|---|---|
| New Cars |
✓ |
✓ |
✓ |
| Used Cars |
✓ |
✓ |
X |
| Upfront Payment | Optional |
Optional |
Required |
| Monthly Payments |
✓ |
✓ |
✓ |
| Damage Charges |
✓* |
X |
✓ |
| Excess Mileage Charges |
✓* |
X |
✓ |
| Depreciation Risk | X |
✓ |
X |
| Road Tax Included | X | X |
✓ |
| Vehicle Ownership |
Option to buy** |
Owned at the end of the term | No option to buy |
| Maintenance Package | X |
X |
✓† |
* Damage and excess mileage charges are only payable if the vehicle is handed back
** If you pay the Optional Final Payment, you will take ownership of the car at the end of the contract
† A maintenance package is available for an additional fee