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Personal Contract Purchase
(PCP)

PCP is a popular finance agreement that has lower monthly payments because the guaranteed final payment of your vehicle defers a larger payment to the end of the finance agreement. In order to determine your vehicles final payment, the age of the car and your annual mileage will be considered.

What are the benefits?

✓ There is no minimum deposit
✓ Lower monthly payments allow you to plan and budget monthly
✓ Guaranteed final payment reduces the risk of depreciation
✓ Finance is secured against the vehicle
✓ A quicker change cycle allows you to change your new car more often
✓ Reduces maintenance costs
✓ Makes your dream car more affordable
✓ You have the final payment of the vehicle which can provide lower monthly payments

How does a PCP finance agreement work?

Having chosen your vehicle, budget, mileage, term and deposit, we can then determine a monthly payment that is both fixed and affordable. Guaranteeing the future value allows you to reduce your monthly repayments.


At the end of the agreement you have three options:

RENEW – opt for a new car by part-exchanging yours; should there be any equity over and above the guaranteed final payment, you can use this as a deposit towards a new car

RETAIN – you can keep the car and pay any outstanding charges (including the guaranteed final payment)

RETURN – return your car to the finance company where no further payment will be required if excess mileage and wear and tear conditions have been met. You may want to consider this option if the value of the car is less than the guaranteed final payment.

Good to know...

You can choose to drive a higher-specification car for the same monthly budget that you were planning to spend.​ When compared with Hire Purchase:

✓ ​You will be able to drive a new car more often thanks to shorter repayment cycles
✓ ​There is the choice to buy the car at the end of your agreement
✓ ​It takes away the worry about depreciation (a proportion of the value is left until the end of the agreement)