What are the disadvantages of PCP (Personal Contract Purchase)?

What are the disadvantages of PCP (Personal Contract Purchase)?

  1. Until you make the final payment, the car is owned by the finance company. If ownership is important to you at the outset this may be a drawback.
  2. You will be limited to the annual mileage chosen initially.  If you exceed this and decide not to buy the car at the end of the contract, you will be required to pay excess mileage fees.
  3. If you change your mind and decide to cancel your contract and return the car then there will be a penalty to pay.  The exact amount varies and depends on your particular agreement.

 

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