The monthly payments are not subject to VAT, however if you do take out the optional service package then you will have to pay VAT on the service costs.
PCP is ideal for any individual who would like options at the end of their finance agreement. PCP customers make an initial payment when they first take out the contract, then pay fixed monthly payments and finally have an Optional Final Payment (OFP) at the end at the end of the contract which is also referred to as the GFV (Guaranteed Future Value).
You can trade in or sell your vehicle at a dealership and take another vehicle from them. If the trade in value is larger than the OFP you will be able to use the difference towards a deposit on a new vehicle. Or, you can simply return the vehicle to the funder, as long as you have not exceeded the mileage and the vehicle is in an appropriate condition for its age there will be no charge. Finally, you can keep the vehicle either by paying the OFP in full or you will find that most companies offer the opportunity to re-finance the OFP.
* All offers are subject to change at any time, you must be 18 or over and finance is subject to status, vehicle availability and terms and conditions apply. We can introduce you to a limited number of finance companies, a commission may be received. Failure to maintain payments may result in termination of your agreement and the vehicle being returned, this could affect your credit rating and make it more difficult to obtain credit in the future. All prices correct at time of publication. All vehicle images and car descriptions on this site are for illustration and reference purposes only and are not necessarily an accurate representation of the vehicle on offer. VAT at 20% may be payable. You should try and estimate the distance you will travel as accurately as possible to try and avoid excess mileage charges at the end of your contract. Only regulated business will fall under the jurisdiction of the Financial Conduct Authority.
T: 0121 794 9073
F: 0121 27 53 867
5 The Croft
Motor Republic is a trading style of National Fleet Services Limited.
Motor Republic are a credit broker and not a lender, we are authorised and regulated by the Financial Conduct Authority. Registered No : 680691
Registered in England & Wales with company number : 03247145 | Data Protection No : Z5088418 | VAT No : 695548379 | BVRLA Registration Number : 1463
Registered Office : 5 The Croft, Buntsford Drive, Bromsgrove, B60 4JE
Copyright © 2017 Motor Republic, All rights reserved.