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Representative finance example: Personal Contract Purchase (PCP)

Based on a cash price of £20,000 with a £4,000 customer deposit, borrowing £16,000 at a representative APR of 9.90% and the following:

48 Monthly payments of
£249.71		 Fixed rate of interest per annum
9.90%		 Optional final payment
£9,090.00		 Amount of interest
£4,826.37		 Total amount payable
£24,836.37		 Annual mileage limit
5,000		 Excess mileage charge
8.4p

At the end of the agreement you have three options: pay the optional final payment (GMFV) and own the vehicle; return the vehicle; or part-exchange the vehicle for a new agreement.
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