Personal Contract Plan (PCP Finance) Eligibility and the Disabled Drivers & Passengers Tax Relief Scheme
There has been much discussion on whether PCP finance is an acceptable form of finance by Revenue when purchasing a vehicle through the Disabled Drivers & Passengers Tax Relief Scheme. Please see the paragraph below from the VRT7 booklet (revised September 18) produced by REVENUE.
“A vehicle acquired under any form of a Personal Contract Plan (PCP) agreement WILL BE eligible for repayment or remission of VRT and VAT under the scheme where at the time the PCP is entered into the only economically rational choice for the customer is to purchase the vehicle at the end of the contract. This will be the case where the expected market value of the vehicle is greater than the “balloon payment” specified in the contract to purchase the vehicle at the end of the contract period”.
We would advise any member thinking of financing a vehicle by way of PCP finance or any other form of finance to speak with Revenue and discuss it with your local motor dealer first.