Under PCP, who owns the vehicle?

Study for the Specialist Automotive Finance Test. Use flashcards and multiple-choice questions with detailed explanations to get exam ready!

Multiple Choice

Under PCP, who owns the vehicle?

Under a PCP agreement, the vehicle is owned by the finance provider during the term. You gain the right to use the car and make payments toward its depreciation, with a large optional final payment (balloon) if you want to own it. Only by paying that final amount does ownership transfer to you; otherwise you can return or trade the car. The dealer arranges the finance, but ownership sits with the finance provider, not you, and not the government.

Under a PCP agreement, the vehicle is owned by the finance provider during the term. You gain the right to use the car and make payments toward its depreciation, with a large optional final payment (balloon) if you want to own it. Only by paying that final amount does ownership transfer to you; otherwise you can return or trade the car. The dealer arranges the finance, but ownership sits with the finance provider, not you, and not the government.

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