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Car Finance - the Carzu Guide to Personal Contract Purchase (PCP)

www.carzu.com Personal Contract Purchase (PCP) is an agreement where you make fixed monthly payments with an optional Final Payment deferred until the end of the agreement. This Final Payment consists of an Option to Purchase fee and the Guaranteed Minimum Future Value (GMFV). Your monthly payments are calculated based on the length of your contract, size of your initial payment, annual mileage and the GMFV. At the end of the agreement you have a few options; make the Final Payment and become the legal owner, part exchange or sell the car and if you have any equity from this you can put it towards a new one, or hand the car back to the finance company. To search from 1000s of new cars, compare finance options, or simply find out more about car finance visit www.carzu.com