Buying a personal contract or “PCP” is the most popular form of financing for new car buyers, but it can be difficult to understand. Our calculator helps you look at how PCP funding works. Simply enter your numbers to get an idea of what your monthly PCP funding might look like. We take your balloon payment number, but we can estimate the future value of the car with our depreciation calculator. This allows us to prepare an ongoing return to show you how each monthly payment affects the balance due and the balance relative to the value of the car on that date. PCP is one of the most common loans for new and almost new cars. PCP allows individuals to put little or no deposit on buying a new car and still have low monthly payments. At the end of the PCP contract, the car must be returned or a final payment must be made for the purchase of the car. Use the PCP calculator to create a monthly illustration of your PCP repayments, to understand how much interest you will pay for your PCP loan, and decide if a PCP auto credit is the right option to finance your next car. While it was relatively easy to find an online calculator that would give us the monthly payment calculation for direct car credit financing, I could not find a PCp financial calculator that would give the monthly payment based on the deposit paid, etc.
So I decided to create one. The PCP calculator will allow you to access the amount of your monthly car credit repayments when you have taken out a car credit. The computer also displays an image that shows you the exact amounts you should pay back each month. If you take out a self-credit to the PCP, you should: voluntary termination is your legal right to terminate a PCP agreement after paying 50% of the entire loan. This is not necessarily half of your payment plan, as it includes the payment of the balloon, administrative fees, plus interest on the initial loan. This is usually agreed in advance with your dealer and should be described in your contract. The most common loan agreement to finance car purchases is the PCP. A PCP loan agreement allows the buyer to deposit a very small deposit, if at all, when buying a new car, but still has small monthly payments.
Once the PCP contract is terminated, the car must be returned to the returned car or a final payment must be made, also known as the car purchase. If you have not yet reached the 50% level, you cannot terminate your PCP agreement by voluntary termination. Instead, our calculator will give you an early billing number which is the amount you have to pay to reach the 50% mark. As a general rule, you must pay the full advance billing figure, plus the cancellation fee described in your contract with the financial company. Damage charges and mileage charges continue to be due. This calculation of the PCP credit is just an illustration and the numbers may vary depending on the PCP`s financing plan for your self-financing. We also found that PCP loans vary between car dealers based on the number of decimals to which they apply their calculations, these different approaches can vary greatly from the amount you re-subscribe each month with PCP and the total amount you re-subscribe over the duration of the PCP agreement.