PCP Finance

Personal Contract Purchase - Lower monthly payments with flexibility at the end of your agreement

How PCP Works

Personal Contract Purchase (PCP) is a flexible finance option that allows you to spread the cost of your vehicle with lower monthly payments. At the end of your agreement, you have three options to choose from.

1

Pay a Deposit

Start with a deposit (typically 10-20% of the vehicle value). A larger deposit means lower monthly payments.

2

Fixed Monthly Payments

Make fixed monthly payments over 2-5 years. These payments are calculated based on the vehicle's depreciation, not the full value.

3

Choose Your Option

At the end of your agreement, you can: pay the final balloon payment to own the vehicle, return it with nothing more to pay (subject to condition and mileage), or part-exchange for a new vehicle.

Lower Monthly Payments

PCP typically offers lower monthly payments compared to Hire Purchase because you're only financing the depreciation, not the full vehicle value.

Maximum Flexibility

Three options at the end: own it, return it, or upgrade to a new vehicle. The choice is yours.

Protected Value

The Guaranteed Minimum Future Value (GMFV) protects you from unexpected depreciation.

Calculate Your PCP Finance

Get an instant estimate of your monthly PCP payments

£
£
10%
£
Estimated Monthly Payment £0 per month
Loan Amount £0
Total Interest £0
Final Payment (GMFV) £0
Total Amount Payable £0

This is an indicative quote only. Final terms are subject to status and credit approval. The final payment (GMFV) is optional - you can return the vehicle instead.

Find Your Vehicle

Why Choose PCP Finance?

Lower Monthly Payments

PCP typically offers lower monthly payments than Hire Purchase because you're only financing the depreciation, not the full vehicle value.

Flexibility at the End

Three options when your agreement ends: pay the final payment to own the car, return it, or part-exchange for a new vehicle.

Regular Upgrades

Perfect for those who like to drive a new car every 2-4 years. Simply part-exchange at the end of your agreement.

Protected Value

The Guaranteed Minimum Future Value (GMFV) protects you from unexpected depreciation, giving you peace of mind.

Fixed Interest Rate

Your interest rate is fixed for the entire term, so you know exactly what you'll pay each month.

Flexible Deposits

From 0% deposit options available. A larger deposit will reduce your monthly payments and potentially improve your interest rate.

PCP Finance FAQs

What happens at the end of my PCP agreement?

At the end of your PCP agreement, you have three options: Pay the final payment to own the vehicle outright, Return the vehicle with nothing more to pay (subject to condition and mileage limits), or Part-exchange for a new vehicle.

Are there mileage restrictions with PCP?

Yes, PCP agreements include an annual mileage limit. If you exceed this limit, you'll be charged an excess mileage fee per mile. It's important to choose a realistic mileage limit when setting up your agreement.

Can I change my mileage limit during the agreement?

You can usually adjust your mileage limit during the agreement if your circumstances change, though this may affect your monthly payments.

What is a Guaranteed Minimum Future Value (GMFV)?

The GMFV is the minimum value guaranteed for your vehicle at the end of the agreement. This is set at the start and ensures you know exactly what the final payment will be if you choose to own the vehicle.

Can I pay off my PCP early?

Yes, you can settle your PCP agreement early. You'll receive a settlement figure which may include an early settlement fee, though this is often waived or reduced. Early settlement can be beneficial if you want to own the vehicle sooner or if you're planning to part-exchange.

What happens if the vehicle is worth more than the GMFV?

If your vehicle is worth more than the GMFV at the end of your agreement, you can use this equity as a deposit towards your next vehicle. This is one of the key benefits of PCP - you may have built up equity that can help fund your next car.

Is PCP right for me?

PCP is ideal if you:

  • Want lower monthly payments
  • Like to change your car every 2-4 years
  • Want flexibility at the end of your agreement
  • Can stick to the agreed mileage limits
  • Are comfortable with the idea of not necessarily owning the vehicle at the end

Ready to Get Started?

Speak to our finance experts today to find the perfect PCP deal for you

Browse Vehicles Contact Us