SEAT launched its Personal Contract Plan (PCP) this week, allowing customers to spread the cost of a new Ibiza or Leon. A PCP allows customers to use the projected future value of the car to reduce monthly payments and offers shorter terms than a traditional hire purchase agreement.
To start the plan the customer pays a deposit, which could be covered by trading in their old vehicle. A monthly payment is set to suit the customer's budget and the vehicle's value at the end of the three-year term is agreed. This value is the final payment at the end of the scheme.
When the three years are up there are three options. If the car is valued above the previously agreed value this equity can be used as the deposit for another PCP on a new car. The customer can pay the final payment and keep the car; or the car can be returned with no further payments necessary (subject to terms and conditions).
SEAT has special offers available for the first customers to take up PCP deals. Customers who order their car by the end of December (for January 2012 registration) can get into a new Ibiza from €4.24 per day (or roughly €130 per month) and the Leon is available from €5.56 per day (€169 per month).
Director of SEAT Ireland, Lorenzo Heller, said of the new PCP scheme: "We understand Irish consumers are under financial pressure and SEAT is delighted to be able to introduce this new flexible payment plan to suit their individual lifestyles."