Bad credit PCP car finance: what is it?

A Personal Contract Purchase, also known as PCP is a great way to beable to afford to purchase a new car and pay for it through easy monthly installments. Bad credit PCP photo

It is easier for people with good credit history to have as many options as they want when they want to search for finance in order to pay for the purchase. However, the number of lenders who are willing to offer a loan to those with bad credit is relatively lower.

Even among those with good credit, the PCP car finance has become much popular since it offers them a greater flexibility and more options. With a PCP car finance option, you would be able to either lease the car or have the option to purchase it at the end of the loan contract which is quite helpful.

Why is Bad Credit PCP car finance so popular?

Bad credit PCP car finance has been quite popular with those with bad credit. There are only a handful of finance options available to those with bad credit and PCP finance is one of them. However, with traditional lenders, the bad credit loans that are offered are not very flexible and are not very comfortable.

Even though the bad credit PCP car finance is less flexible than the PCP loans for those with good credit, there is still a good number of advantage that it provides.

Like the normal PCP loans, the one for those with bad credit offers you the comfort of having to pay a lower installment every month. The only difference is that you might have to pay a higher amount at the beginning of the term in order to be able to get the loan as a deposit. But in return, you would find it easier to handle the monthly installments.

At the end of the loan term, you would be able to pay an amount of 30 to 40% of the car cost if you wish to purchase it. There are quite a lot of people who prefer to drive the newer versions of cars. For such people, at the end of the term, you can simply exchange the car for a newer one with the same lender. There would be no extra deposit that would have to be paid.

For borrowers, the biggest benefit of a bad credit PCP car finance is that they would be able to secure easy credit even with their credit history. In many circumstances, this might be your only option.

You can check a few websites and finance companies like Aztec Vehicles Solutions, Car Finance, Autotrader and others in order to get bad credit PCP car finance.