Key Facts – Personal Contract Purchase Terms
This is a summary of the key facts regarding the Personal Contract Purchase agreement you are considering and does not form part of the full terms and conditions of the Finance Agreement. It is important that you read the terms and conditions relating to the Finance Agreement when you receive them from the Finance Company as they supersede our Order Form. Please also review your payment options and requirements at the end of the lease. If you are unsure how a PCP agreement works, please ask or seek advice prior to proceeding.
Select Car Leasing is a trading style of Select Contracts (UK) Limited, and the firm is authorised and regulated by the Financial Conduct Authority FRN 670832. Select Car Leasing are a credit broker not a lender.
Finance Agreement
➢ Contract Arrangement: Your order will be forwarded to a Finance Company. You will sign a separate Finance Agreement.
➢ Terms and Matching Details: Verify that the Finance Agreement's contract term, mileage allowance, payments, maintenance options, and excess mileage details align with your Vehicle Order.
➢ Mileage Allowance: You have a maximum set annual mileage any excess mileage incurs charges as outlined in your Finance Agreement.
➢ Fixed Term: The contract is for a fixed term, with no automatic right of vehicle use after the initial term. You do not own the vehicle until the end of the agreement and the final balloon payment and option to purchase fee has been made. You cannot sell or part exchange the vehicle during the lifetime of the agreement unless the finance is settled early.
➢ Vehicle Ownership & Early Termination: You will need to contact your finance provider directly to explore your purchase options. These details should also be outlined in your signed finance agreement. Please note that if you choose to refinance your balloon payment, the total interest payable is likely to be higher compared to a standard hire purchase agreement.
If you decide not to pay the final balloon payment, you have the option to return the vehicle to the finance company or use it as a part exchange for a new vehicle. At the end of the agreement, there may be equity remaining in the vehicle, though this is not guaranteed.
The advantages of this type of agreement include fixed monthly payments, flexibility in selecting the agreement term and deposit amount, and rights to make lump sum payments or terminate the agreement early, should you choose to do so.
Ending the agreement early will incur fees as stated in your Finance Agreement.
Vehicle Responsibilities
➢ Vehicle Suitability: Ensure the vehicle on your Order Form meets your requirements.
➢ Warranty: A standard Manufacturer’s Warranty applies from the date of first registration; servicing must follow the manufacturer’s guidelines.
➢ Breakdown Cover: Vehicles may come with Manufacturer’s Breakdown Cover from first registration please confirm cover and the duration with the Manufacturer.
➢ Roadworthiness: Keep the vehicle legal and roadworthy.
➢ Insurance: Comprehensive motor insurance is required from delivery until the vehicle's return. Notify your insurer that the vehicle is leased and owned by the leasing company.
➢ Servicing: Adhere to the manufacturer’s service schedule and use a Finance Company-approved garage. Record service updates.
➢ MOT: Obtain a valid MOT three years post-registration or as required by the Finance Agreement.
➢ Maintenance Plan: The customer is responsible for maintaining the vehicle.
➢ Breakdown Cover (Maintenance Plan): This is not provided.
➢ Uneconomical Repairs: The Finance Company can terminate the finance early if repairs become uneconomical.
➢Pre-Registered Vehicles: Manufacturer Warranty and MOT may expire before vehicle return if contract duration exceeds standard terms.
➢ Road Tax (VED): Road Tax is covered by customer
In-Contract Charges
➢ Late Payments: Delayed payments incur additional charges, including an administration fee.
➢ Penalty Charge Notices: These will be forwarded to the Lessee for payment by the finance provider, along with any administration charges.
➢VE103 Form for Travel: Customers will need to contact their finance provider for confirmation on abroad travel.
End of Contract
➢ Vehicle Collection: Vehicle Collection: Contact the leasing company or the end-of-contract team (endofcontracts@selectcarleasing.co.uk) at least 14 days before the lease expiry to arrange vehicle collection if required. Rental payments will continue until the vehicle is collected.
➢ Return Condition: The BVRLA Fair Wear and Tear guidelines can serve as a useful reference for the condition of a vehicle at the end of a lease. However, it's essential to review the specific terms of the finance agreement to understand the expectations around the vehicle's condition.
➢ Excess Mileage: Any mileage over the agreed limit incurs per-mile charges as per the Finance Agreement.
➢ Pro-Rata Mileage: Returning the vehicle early entitles you to a pro-rata mileage allowance based on term duration.
➢ Service Evidence: You are liable for charges if service and maintenance records are missing upon return.
➢ Items to Return with Vehicle:
- Service history or stamped service booklet
- All keys/fobs, including spares and codes
- Handbooks/manuals
- Locking wheel nuts
- Spare wheel/space saver/inflation canister
- Accessories included in the lease cost
