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.
Newbury Leasing is authorised and regulated by the Financial Conduct Authority, we are a credit broker and not a lender. Registered No : 690568.
| Registered in England & Wales with company number : 4051316 | Data Protection No : Z7832313 | VAT No : |
Newbury Leasing are a credit broker and not a lender, we are regulated by the Financial Conduct Authority. Registered No : 690568
Warning: 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. For more information and help, go to www.moneyadviceservice.org.uk
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