PCP Agreement definition

PCP Agreement or "PCP" means each personal contract plan agreement entered into between an Obligor and VWFS in the form of standard business terms or otherwise pursuant to which VWFS has provided financing to an Obligor where the Final Rental Amount is substantially greater than the previous payments due under such contract and such Final Rental Amount is optional pursuant to the terms of such contract.
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PCP Agreement means fixed interest rate conditional sale contracts entered into by the Seller and Customers, which are secured by retention of title to the Financed Vehicles and, if the Customer opts to retain the related Financed Vehicle at the end of the contract term, a Guaranteed Future Value Payment becomes due from the Customer;
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Examples of PCP Agreement in a sentence

  • Accordingly, the Noteholders are relying on the business judgement and practices of VWFS as they exist from time to time, in its capacity as Servicer, including enforcing claims against Obligors and selling Financed Objects at the end of a PCP Agreement.

  • The typical PCP Agreement also amortises on the basis of fixed monthly instalments of equal amounts over a 6 to 60 month instalment period, with a substantial portion of the outstanding amount under the PCP Agreement being repaid in a single Final Rental Amount at maturity.

  • However, unlike the terms of a typical LP Agreement, the Obligor under a PCP Agreement is not required to pay the Final Rental Amount.

  • By deferring the repayment of a substantial portion of the outstanding amount of the LP Agreement and the PCP Agreement until the final redemption date, the risk of non-payment of the final instalment under an LP Agreement or a PCP Agreement is greater than would be the case under an HP Agreement where instalments are generally of equal size.

  • Obligors pay equal monthly instalments with a fixed interest rates and the amortisation schedule of amounts payable under a PCP Agreement is characterised by a large Final Rental Amount, normally reflecting an excess of the residual value of the vehicle at the end of the Financing Contract.

  • The Servicer may, acting in accordance with its Customary Operating Practices, agree to a COVID-19 Extension in respect of a maturing Purchased Receivable under which the related Financing Contract is a PCP Agreement.