Personal Contract Purchase (PCP)

Whether it is a new or a pre-owned car you are looking for, this flexible finance plan may help you change your vehicle at more regular intervals and give you lower monthly payments, meaning a new vehicle more often! With part of the cost of the vehicle being deferred until the end of the agreement, your investment is protected against the risk of an unexpected fall in used vehicle values.

PCP: How does it work?

  • Simply choose the car (new or pre-owned) you like.
  • Choose the most suitable repayment period for you.
  • Decide on the deposit contribution that suits you.
  • Agree on your anticipated annual mileage.
  • You will then be given a Guaranteed Minimum Future Value which becomes your optional final payment.
  • Using the above information your guaranteed minimum future value will be calculated for your car at the end of your repayment period which becomes your optional final payment.
  • This value is guaranteed by us and the finance provider which is why it is commonly known as a Guaranteed Minimum Future Value.
  • The remaining balance is then divided by the term you have agreed to calculate your monthly repayments.
  • At the end of the agreement there are three choices for you; part exchange your vehicle for another car, keep the car and pay the final payment or hand it back and given it is in good condition and within the agreed mileage you will have nothing further to pay.

PCP: What are the benefits?

  • The future value of your Maserati is guaranteed, so you are protected against any unexpected fall in pre-owned car values.
  • At the end of the agreement you have the option toeither keep the vehicle, part exchange it (using any equity as full or partial deposit for your next car) or return it. This means you will have the option to change your vehicle more often.
  • As the future value is set at a minimum, if you keep your Maserati in great condition and within the agreed mileage your vehicle could potentially be worth more than the Guaranteed Minimum Future Value. Meaning you could use any equity as full or partial deposit for your next car.
  • Fixed monthly payments mean you always know what you will be paying, so there are no nasty surprises.
  • You have the potential for lower monthly payments than traditional forms of funding, because the final payment at the end reduces your monthly commitment.
  • You can match the length of your repayments with the time you want to keep the vehicle and not you as an individual.
  • You will receive the additional security of having the loan secured against the vehicle being purchased.
  • You will have the comfort of guaranteed fixed interest and fixed monthly payments, allowing you to budget with confidence.
  • Changing your car regularly saves money on repairs and maintenance, whilst keeping you up to date with the latest technology; potentially meaning a more efficient and safer vehicle.

Example of a Morgan PCP Agreement

Duration of agreement 2 years
Monthly payments of £299.98
Deposit £7,810.80
Cash price + OTR £39,054
Acceptance fee £199
Optional final payment £27,556.50
Options fee £149
Total amount payable £42,455.82
Total amount of credit £34,756.02
Representative APR 5.9% fixed