Solutions Personal Contract Plan
What is a solutions personal contract plan?
A Solutions Personal Contracts Plan, or PCP, is a popular way to finance your car.
With a PCP, your monthly payments can be lower than with a hire purchase plan or a personal loan. This is because you’re paying the difference between the cost of your car and its predicted value at the end of the agreement, plus interest and fees.
Once you’ve told us what you expect your mileage to be, we’ll agree a future value for your car upfront. That way you can enjoy driving your new car without worrying about how much it will be worth in years to come.
How much do I pay and when?
Your Škoda Solutions Personal Contract Plan monthly payments will depend on the value of the car and the repayment term you choose. You can make monthly payments over a period of anything from 18 to 48 months.
At the start of your plan, you also have a choice as to the amount of deposit you pay. This can be as little as one month’s payment.
You may also choose to defer a payment amount to the end of your agreement. This is known as the final optional payment.
Once you’ve chosen your car and decided how much deposit you want to pay, you have three more decisions to make. Your choices will determine how much your monthly payments will be.
Choose any period between 18 and 48 months.
Tell us how many miles you expect to drive in the first year. Bear in mind that fees may apply if you exceed this mileage.
Agree the payment amount you’ll defer to the end of your agreement. This is known as the final optional payment.
You have three options at the end of your agreement:
Your Solutions Personal Contract Plan gives you a range of options and a great deal of flexibility.
To get the best value from your plan it’s important to keep your Škoda in good condition and not exceed your agreed mileage. You also need to make your repayments on time.
Your benefits at a glance
Low deposit
Your deposit can be as little as one month’s repayment.
Low repayments
Deferring a set amount to the end of your agreement could help to reduce the amount you repay each month.
Protection from depreciation
As a future value for your Škoda is agreed upfront, you are protected from unforeseen depreciation provided you keep your car in good condition and within the agreed mileage.
Flexibility
At the end of the contract, you can opt to keep, upgrade or return your Škoda. The choice is yours.
Solutions Personal Contract Plan FAQs
Is a Personal Contract Plan (PCP) a good idea?
It depends on your circumstances. A PCP could make sense for you if you change your car regularly, want lower monthly payments and value flexibility. But you do need to manage your mileage, take good care of the car and be aware that you won’t own the car until the end of the agreement.
What are the advantages of PCP?
With PCP, your monthly payments can be lower than with a hire purchase plan or a personal loan. You can also defer an agreed amount to the end of the agreement. You also enjoy the benefit of flexibility, with three options at the end of your agreement – returning, upgrading or keeping the car.
Which is better, PCP or Hire Purchase (HP)?
It depends on your circumstances. Broadly speaking, you may wish to choose PCP for lower monthly costs and the option to keep, upgrade or return the car at the end of your agreement. Hire Purchase may suit you better if you want to own the car long-term and don’t wish to worry about keeping your mileage down.
How does PCP work?
PCP could be described as a hybrid between a car loan and a long-term rental. It gives you lower monthly payments because you’re paying the difference between the cost of your car and its predicted value at the end of the agreement. You also defer an agreed amount to the end of the agreement. At that point, you either make that optional deferred payment to keep the car or simply return it. Your third option at the end of a PCP agreement is to upgrade.
Does PCP include insurance?
No, generally PCP does not include insurance. Insuring the vehicle is mandatory, and you must arrange this yourself.