Personal Contract Purchase

Personal Contract Purchase is a personal contract.

It is a conditional sale agreement under the consumer credit act. It provides the option for you to purchase the vehicle, or return it at the end of the contract term (subject to settlement of any excess mileage and unfair 'wear and tear' – (look for note on the BVRLA fair wear and tear standard guide here)

Personal Contract will remove the tax liabilty (BIK) benefit in kind tax for company car drivers who select a more expensive or high CO2 emmission rated vehicles.

You may include the same comprehensive service, such as maintenance and repair options. Payments are not subject to VAT, however the optional service package will attract VAT on the service costs.

You will need to decide whether you wish to complete the purchase of your vehicle, or return it to the lease company and take out a new contract on a new vehicle.