What is PCP Finance?
Personal Contract Purchase (PCP finance) is a type of financing agreement where the borrower makes monthly payments over an agreed period of time with the option to return or keep the car once the agreement ends. This can be a great way to purchase a car without investing all of one’s savings at once.
Can You Use PCP For Older Cars?
The answer to this question depends on the particular lender and the age of the car in question. Generally speaking, most lenders will allow for vehicles up to 8 years old to be purchased using PCP finance; however, some lenders may impose stricter age limits. It’s important to check with your specific lender before making any decisions.
Additionally, it’s important to note that although older cars may qualify for PCP finance, they may not be eligible for certain features such as extended warranties or gap insurance policies. These features are typically only available on new or nearly new cars.
Are There Any Benefits To Buying An Older Car With PCP Finance?
One possible benefit of buying an older car with PCP finance is that you may end up spending less in total than if you had bought a newer model outright. As long as you make sure that any vehicle you buy is in good condition and has been properly looked after, then there should be no reason why it won’t last for many years.
Furthermore, when it comes time to resell your vehicle at the end of your agreement, used cars tend to have better resale values than brand-new cars due to depreciation costs. This means that you could potentially get more money back when returning your vehicle at the end of your contract compared to if you had bought a brand-new one.
Summing Up
When considering whether you can use PCP finance for an older car, it ultimately comes down to what type of lender you are working with and how old your desired vehicle is. Generally speaking, most lenders accept vehicles up to 8 years old but this can vary depending on which provider you use.
Also, bear in mind that some features such as extended warranties or gap insurance policies may not be available on older models so make sure these are taken into account before signing any agreements.
Finally, purchasing an older car can provide potential cost savings both now and in the future thanks to lower monthly payments and potentially higher resale value when it comes time to return or keep your vehicle at the end of your contract period.
