PERSONAL CONTRACT PURCHASE

You choose your deposit at the beginning of the agreement, and then pay equal monthly repayments with a fixed interest rate, over your chosen period. At the end of the agreement you choose one of the following 3 options:

1. Part Exchange: subject to paying your agreement in full you can part exchange the vehicle at the end of the term or any time during the agreement. New credit agreements are subject to status.
2. Return: You have the option to return the vehicle at the end of your agreement. To avoid incurring charges, the vehicle needs to be in good condition and within the permitted maximum mileage - find out more in our good condition guide
3. Own: Own the vehicle outright by paying the optional final repayment. This will include a £10 purchase fee.

You will also decide how many miles you’re likely to travel each year (up to 24,000 miles), this will affect your monthly repayments and the optional final repayment amount. Make sure you select a realistic mileage allowance, otherwise excess mileage charges may be incurred if you decide to return your vehicle above the agreed contractual mileage.

Our dealers will be able to talk you through the personal contract purchase options available to you, and will be able to answer any questions you might have.

A car’s Guaranteed Minimum Future Value (GMFV) is equivalent to the optional final repayment and is based on the estimated value of the vehicle at the end of the agreement. The value assumes that when returned the vehicle is within the set maximum agreed mileage and good condition.

The GMFV protects you against any unexpected decrease in the value of the vehicle. This means Suzuki Finance takes on the risk of depreciation above the level of the GMFV, and you can hand the vehicle back with nothing to further to pay at the end of the agreement.

Before you decide whether a Personal Contract Purchase agreement is right for you, it’s worth bearing in mind that:

• You will pay more interest on a PCP agreement than a like for like HP agreement (same loan amount, term and APR).
• If you choose to part exchange your vehicle at the end of the agreement it could be worth less than the optional final repayment leaving you with a shortfall to pay before starting a new agreement.
• You won’t own the car until you have made all the repayments, including the optional final repayment plus any interest.
• Excess mileage charges may be incurred if you exceed your agreed mileage and return the vehicle to us
• Age of vehicle must be no more than 7 years old at the end of the agreement

Consider speaking to your local dealership to find out more.