ESRI research finds most car buyers do not understand Personal Contract Purchase plans

New research from the ESRI shows many consumers don't understand key aspects of Personal Contract Purchase plans.

The study shows that the PCP offers have become a popular way to raise the finance to buy a car.

The deals offer lower monthly payments than hire purchase agreements or loans, making it more affordable for people.

However, many car buyers using PCP finance fail to understand that after putting down a deposit, making three years of monthly payments, caring for the car and staying within agreed mileage limits, they end up owning little or no asset in return.