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There are many different funding models to help towards driving the car of your dreams, and buying the vehicle outright is just one of them. You have read about the benefits of car leasing elsewhere, but how does leasing compare to other funding models? Notably personal contract purchase, otherwise known as PCP?
Leasing (also known as personal contract hire or PCH) and PCP are very similar products, but with some important differences, and which may suit different motorists in different circumstances. Let us explain:
A car leasing deal is a long term rental agreement, whereby you pay an upfront deposit and then follow this up with a fixed monthly leasing payment for the duration of the lease agreement. You are free to choose the length of the lease, choose from a list of the best car leasing deals and then can enjoy driving the vehicle exclusively, and when the lease period ends you return the vehicle to the leasing company and are free to choose a new vehicle and start a new lease agreement.
With a PCP agreement you also agree a fixed monthly payment and you pay this for the duration of an agreed lease period. However, at the end of this period you have the option of paying a pre-agreed lump sum to purchase the vehicle outright, or returning the vehicle to the leasing company and choosing another one.
As you can see, there are many different types of car leasing deal, and there are many pros and cons to PCP deals.
If you would like to know more about leasing, PCP, new or used car leasing deals or EV leasing, contact the experts at Pink Car Leasing today.
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