A Personal Contract Purchase (PCP) plan will enable you to purchase a new vehicle with lower monthly repayments. The way this is achieved is by deferring an amount of the total cost of the vehicle to the end of the contract. This amount is known as the Guaranteed Future Value (GFV) which is often referred to as the optional final balloon payment.

At the end of the contract you have four options:

• You can return the vehicle to the finance company. As long as you have not exceeded the agreed mileage, you will have nothing more to pay.
• If you want to keep the vehicle, you can simply pay off or refinance the outstanding balloon payment.
• You can come back to Simply Trade Sales and part exchange your vehicle for the next new vehicle. If the trade-in value is greater than the GFV, the difference can be used towards a deposit on the next agreement.
• You can sell the vehicle privately and keep any profit over and above the GFV.