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

Multiple Choice

Which charges may apply under PCP?

Under PCP, you have a mileage allowance and you’re expected to keep the car in reasonable condition. If you exceed the agreed miles, over-mileage charges can apply. If the vehicle is returned with damage beyond normal wear and tear, damage charges may apply for the repairs. Because both of these situations are possible at the end of the agreement, both types of charges may apply. The option that suggests no charges apply is incorrect, and maintenance charges aren’t typically charged under PCP unless a separate plan is in place; early termination charges can occur but aren’t the only charges.

Under PCP, you have a mileage allowance and you’re expected to keep the car in reasonable condition. If you exceed the agreed miles, over-mileage charges can apply. If the vehicle is returned with damage beyond normal wear and tear, damage charges may apply for the repairs. Because both of these situations are possible at the end of the agreement, both types of charges may apply. The option that suggests no charges apply is incorrect, and maintenance charges aren’t typically charged under PCP unless a separate plan is in place; early termination charges can occur but aren’t the only charges.