The purchase of a lease is a form of a lease-sale agreement in which a sum is carried over until the end of the contract. This is determined by the likely age of the car and the expected mileage. Unlike PCP (Personal Contract Purchase) agreements, the deferred amount (also known as balloon payment) is not optional and must always be paid. A PCP agreement also gives you the flexibility to decide whether you want to own the car directly at the end of the agreement, by paying the deferred value (GMFV) or by returning the car to the lender and entering into a new car financing contract. Even if you don`t plan to keep the car, it`s still an important number because it shows you how much you actually pay to finance the car. In this case, the total amount of $27,009.34 less the cash price of the car ($23,900.00) means that you pay $3,109.34 in interest and fees to finance the car over four years. Your financial company will be able to provide a complete guide with all the additional requirements, and you should rely on the acceptable or notable condition of your car. As an idea of what is included, the general points are: interest is calculated on the total amount of a loan for the duration of the loan. The package does not take into account the fact that periodic repayments, covering both interest and capital, gradually reduce the amount owed.
See also The fixed interest rate You must have paid half the value of the vehicle to cancel or stop the PCP prematurely. If you haven`t, you have to pay the difference before you can opt out of the contract. The car must also be in good condition, or you may be charged for repair costs. An agreement to sell goods allowing the customer to pay, in whole or in part, the cost of the goods. It differs from the rental sale and the conditional sale by transferring the property to the customer at the beginning of the contract. In many cases, you don`t need to find the money in advance, as the lender is usually happy that you are selling the car at the end of the agreement – provided you check it first and tell each buyer that there is unpaid financing.