Peugeot Finance Encore: Driving Affordability

Peugeot Finance Encore is a personal contract purchase (PCP) finance product designed to make driving a new Peugeot more accessible and affordable. It offers a flexible way to finance a new car, typically involving lower monthly payments compared to traditional loans, by deferring a significant portion of the vehicle’s value until the end of the agreement.

How it Works

Encore works by splitting the cost of the car into three key components:

• Deposit: You pay an initial deposit, which can be a cash amount, a trade-in vehicle, or a combination of both. The deposit size influences the monthly payments; a larger deposit usually results in lower monthly costs.
• Monthly Payments: You make fixed monthly payments over an agreed term, typically between 24 and 48 months. These payments cover the depreciation of the car during the agreement, plus interest.
• Optional Final Payment (Balloon Payment): At the end of the agreement, you have three options:
• Retain the Car: Pay the optional final payment (also known as the balloon payment) to own the car outright. This payment represents the guaranteed future value (GFV) of the vehicle at the end of the term.
• Return the Car: Hand the car back to Peugeot Finance, subject to meeting mileage and condition requirements. This means you don’t have to worry about selling the car yourself.
• Renew the Car: Trade in the car for a new Peugeot and start a new Encore agreement. This allows you to drive a new car more frequently.

Key Benefits of Encore

• Lower Monthly Payments: The deferred final payment allows for significantly lower monthly payments compared to a traditional car loan.
• Flexibility: The three options at the end of the agreement give you flexibility to choose the best course of action based on your circumstances.
• Drive a New Car Regularly: The ability to easily renew your car every few years allows you to drive a new, technologically advanced vehicle more often.
• Fixed Interest Rates: You benefit from a fixed interest rate throughout the agreement, providing certainty and predictable monthly costs.
• Protection Against Depreciation: If you choose to return the car, you don’t have to worry about the vehicle’s depreciation beyond the agreed-upon terms.

Things to Consider

While Encore offers many benefits, it’s essential to consider the following:

• Mileage Restrictions: Encore agreements typically include an annual mileage limit. Exceeding this limit will result in excess mileage charges.
• Condition Requirements: When returning the car, it must be in good condition, accounting for fair wear and tear. Damage beyond normal wear and tear may result in charges.
• Optional Final Payment: If you choose to retain the car, you’ll need to have the funds available to pay the optional final payment. If you need to borrow to cover this payment, factor in the interest costs associated with that loan.
• Total Cost: While monthly payments are lower, remember to factor in the deposit, monthly payments, and optional final payment to understand the total cost of the vehicle.

Peugeot Finance Encore is a valuable option for those looking for an affordable and flexible way to finance a new Peugeot. By carefully considering the terms and conditions, you can decide if it’s the right finance solution for your needs.