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Guide to the Common Dealership Terms When Buying A Car

Car Examer

For example, if there’s a £1,000 deposit contribution, that amount goes toward your down payment, reducing what you need to put down yourself. With PCP, you pay lower monthly payments because a large portion of the car’s cost is deferred until the end of the agreement. It’s often called the balloon payment.

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Guide How to Finance a Used Car

Car Examer

Personal Contract Purchase (PCP) PCP is a popular financing option because it often comes with lower monthly payments. You pay a deposit, followed by smaller monthly payments, and at the end of the contract, you have three options: pay a final balloon payment to keep the car, return it, or trade it in for another.

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