Personal Contract Purchase

Better known as PCP

If you want a flexible and popular way to get behind the wheel of a new car or van, PCP could be the answer. It works by keeping your monthly payments lower, with a larger final payment due at the end of the agreement. This gives you the freedom to drive a car that might normally feel out of reach if paying in one lump sum.

When you take out a PCP deal, the finance company sets a guaranteed future value for your vehicle — and that’s an amount you’ll never have to repay. You’ll put down an agreed deposit, then make fixed monthly payments that include interest.

When your agreement comes to an end, you’ve got three options:

• Pay the guaranteed future value and keep the car as your own
• Hand the car back and walk away with nothing more to pay
• Use it as part exchange towards your next new car

...the decision is entirely yours.

PCP Is Ideal If You....

• Are looking to purchase a more expensive car with lower monthly repayments
• Want to change your vehicle regularly, keeping up to date with the latest models
• Want to stick to a fixed monthly amount with a budget
• Want a guaranteed future value for your vehicle at the end of the agreement
• Want to buy a new or used vehicle
• Are able to pay the agreement off early - You may be entitled to a rebate.
• Are over 18 years old
• Have a fully comprehensive driving license
• Are going to be the only registered keeper of the vehicle

Things You Need To Know About PCP...

• At the end of the agreement, you have to pay back a large sum of money to own the vehicle. You need to be aware of this and budget accordingly if you want to be the owner of the vehicle at the end of the PCP contract
• Are you able to set an expected annual mileage? If you can, this agreement is for you. If you can't, you may negatively affect your monthly repayments and the guaranteed future value of the vehicle. As well as acquiring extra charges.
• Additional charges will apply if you hand back the vehicle in a poor condition
• You cannot sell or give the vehicle away until the agreement is paid off in full
• Your vehicle may be repossessed if you don’t make your regular monthly payments