Monday 21 October 2019

What is PCP finance and is it right for you?

PCP is a phrase you’ll see and hear quite often when shopping for a new car. But what exactly does it mean and how is it that monthly repayments on a brand new car now seem so much more affordable than they once were?

PCP stands for Personal Contract Plan, and it is just that – a contract between you and the finance provider that puts you on the road to driving a new car in a more affordable way. It’s essentially a programme that gives you the option to buy the car eventually, as well as a couple of other choices.

It works as a three part process:

1. The deposit

Most PCP deals require between 10 – 30pc of the purchase price up front, or you can also trade in your current car as a deposit if you have one. 

2. The payment plan

You then agree a monthly repayment, generally spread out over three years. You also agree a guaranteed minimum future value of the car (GMFV). The car might be worth more but you’re guaranteed that it will never be worth less than the agreed amount.

3. Decision time

At the end of the three years, you will be left with three more choices. You can hand it back, start a new PCP plan on a new car, or make one final payment to own the car outright. You can also refinance the balance of the final payment.

The benefits of PCP are plentiful. There are the low monthly repayments, the flexibility to choose what happens at the end of the three years, and perhaps best of all - having a new car on the driveway more often. It is an arrangement that works well for many people, with one in three customers now choosing to finance their new car in this way.


When you choose a PCP with Volkswagen, there are even more benefits available. Thanks to their own in-house financial services – their customers can avail of even better value finance solutions across a range of exciting new models, just in time for the 191 registration period. These include:

• PCP finance starting at an incredible 0pc Typical APR
• Purchase contributions of up to €2,500 to help with the deposit
• A range of technology packs and upgrades that can add a huge amount of impressive high-tech safety, comfort and infotainment features to a car for just a few extra euros per month.
• Volkswagen Financial Services guarantees your car will be worth an agreed amount at the end of your agreement - this is your Guaranteed Minimum Future Value. This means you don’t need to worry about the re-sale value of your car in three years’ time.

These offers are available across the entire Volkswagen range, including their impressive new selection of SUVs. So whether it’s a trendy T-Roc or a spacious, seven-seat Tiguan Allspace that you need, with Volkswagen PCP, you will not only get the best possible finance deal but you may also be able to afford a newer model or higher specification than you thought.

New car technology is developing rapidly and Volkswagen are at the forefront of this new innovation with high tech safety features like Adaptive Cruise Control, Lane Change Assist and Road Sign Recognition now available across a wide range of vehicles. These features are not only very convenient for the driver, they also help to make our roads safer for everyone. The cost of these upgrades can also be spread over the 36 months, making this cutting edge new technology now more accessible and affordable to more people than ever before.

Another benefit of taking out a PCP with Volkswagen is a much more straightforward transaction. Cutting out ‘the middle man’ means your whole customer experience will be quicker and more straightforward, with the added bonus of dealing with experienced product specialists who will be able to make sure you get both the best car and finance package to suit you.

Volkswagen Financial Services Ireland (VWFSI) have been providing PCP services to Irish customers for ten years, with high levels of repeat purchase. A recent survey revealed that 95pc of customers were either satisfied or extremely satisfied with the products and services available.

For more information on Volkswagen’s latest range of vehicles, including the T-Roc, Polo, seven-seat Tiguan Allspace, and the stunning new Touareg, visit the Volkswagen website to find your local Volkswagen dealer and arrange a test drive today.

You can find out more information on current finance offers here, including the incredible savings available for 191 including 0pc APR PCP finance and purchase contributions of up to €2,500.

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