What is Personal Contract Purchase (PCP)?

Personal Contract Purchase (PCP) is a popular car finance option that gives you flexibility when buying a car. Instead of paying the full price upfront, you put down a deposit (usually 10% or more), then make fixed monthly payments over an agreed term (typically 2-4 years). What makes PCP different is that at the end of the agreement, you have three choices: pay a final balloon payment to own the car, return the car with nothing more to pay (as long as it’s in good condition and within the agreed mileage), or trade it in and use any value left towards a new car.

Why might PCP be right for me?

• You can swap your car for a new one every few years.
• Lower monthly payments compared to other finance options such as HP.
• Flexible ownership options.
• You’re not locked into buying the car unless you want to with an optional Final Payment. If your situation changes, you can simply hand the car back.