Cars and fleet – definition – Personal contract plan

A personal contract plan (PCP) is a type of employee car ownership scheme that allows an employer either wholly or partially to sacrifice the responsibility for the company car and offers employees the opportunity to have a vehicle under similar conditions to the company car. 

Under a personal contract plan, the employee agrees to make payments over a period of time to finance a car. At the end of the period, the employee can either start a new plan or buy the car. Some agreements include vehicle maintenance and insurance costs.

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