Also known as PCP
A variation of Hire Purchase in which the monthly payments are reduced by deferring a portion of the finance to the end of the agreement. When you reach the end of the agreement, you can pay the final figure and gain title to the asset, or return the asset to the finance company. It may be possible for you to enter into a new agreement to repay this final figure in instalments.
Often, this facility includes a service or maintenance contract within the instalments. This facility is particularly useful for individuals who require a company car, but wish to fund it privately. As this is a branded variation of Hire Purchase, the same rules for fees and tax apply.