Purchase options introduced for PCP drivers

Motorists whose Personal Contract Purchase agreements run out during the Covid-19 crisis can now keep their vehicles by switching to a hire purchase agreement through BuyaCar.

The online marketplace has introduced the service to enable motorists to affordably keep their cars and avoid a large final PCP payment.

Britain’s finance watchdog, the Financial Conduct Authority (FCA), announced last week that it expects lenders to offer a ‘payment holiday’ of up to three months for car owners facing financial uncertainty. But many motorists will still face a big final payment at the end of that period or may remain cautious about going back into the market to get another vehicle.

BuyaCar has partnered with specialist lenders to help those drivers to avoid the final “balloon” payment on their PCP and instead fund the outstanding finance on their car with a traditional hire purchase agreement, so they can own the car outright.

Finance expert Christofer Lloyd, editor of the BuyaCar website, said: “You might want to keep your car because you’ve fallen in love with it, perhaps a new one is outside your budget, or simply because you’d rather not source another one during such an uncertain time. In those circumstances refinancing the outstanding sum at the end of your contract and eventually owning your car outright may be the ideal solution.

“We welcome the FCA’s encouragement of lenders to help customers during the current crisis in particular but a three-month payment holiday is a short-term measure, whereas we aim to offer people the long-term certainty of owning their car where that is best for them.”