“Contract Purchase” is a form of leasing popular in the UK for financing cars. This service is seldom used by companies. When individuals use the service it is called “Personal Contract PurchaseSee "Contract Purchase".... More” or “PCP”. This financing service strongly resembles “financial leasingA leasing contract, under which, the... More with residual valueThe residual value is present in... More”. The contract stipulates an initial installment. Typical duration is between 24 and 48 months. There is an annual mileage limit. The lesseeThe lessee is the user of... More has the option /not the obligation/ to buy the car at the end.
