PCP: Cash for Car

Personal motoring schemes allow employees to enjoy many of the benefits of a company car but without any benefit-in-kind (BIK) implications..

A PCP (Personal Contract Purchase) is an agreement between Lombard Vehicle Solutions and an employee based on a conditional sale sale agreement. LVS set a minimum guaranteed future value (MGFV) for the vehicle based upon anticipated mileage over a 2, 3 or 4 year period.

The MGFV is then deducted from the discounted cash price of the vehicle and payments are then based on the difference, together with an interest repayment. Employees, therefore, only pay for the proportion of the car’s life that is ‘used’, thereby, reducing the monthly payment compared to traditional car loans.

  • Low initial costs
  • Fixed monthly repayments
  • Guaranteed future values (MGFV)
  • Optional fixed cost service and maintenance plans
  • End of contract flexibility