PCP deals haven\’t really taken off in the world of scooter finance, largely due to the relatively low cost of buying a new scooter. For certain high-end models (Piaggio MP3 etc.) it can make for an alternative and more affordable way to purchase though.
Piaggio Group have just launched new web based calculators for it\’s \’3DOM PCP\’ and \’Freedom HP\’ finance. Users can visit the websites, modify the deposit, change the length of the agreement and annual mileage to create a plan that is affordable, or works out better for them.
The calculator also compares between PCP and ordinary HP payments. Each brand website links to the calculator, so visit the Aprilia, Vespa or Piaggio websites and see if you can afford a new scooter this summer.
What is PCP
Personal Contract Purchase, or PCP is a popular way to buy vehicles, it\’s like ordinary HP but the monthly payments are lower because you\’re only paying off the depreciation and interest rather than the whole vehicle cost. Buyers are left with a balance at the end of the term, this \’balloon payment\’ can either be paid so you own the machine, the vehicle handed back or more often the case, buyers will swap it for another new model.
GMFV
When you set up a PCP deal the seller will give a Guaranteed Minimum Future Value – GMFV, that\’s what it\’ll be worth at the end of the deal.
Limited mileage
PCP is a good way to buy if you\’re the kind of rider who likes a new machine every three years and know roughly how much mileage you\’ll be doing (mileage limits are set).
