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Buying a car on finance

If you're considering buying a car on finance, it's important to know which finance options are available before deciding on the best one for you.

PSA Finance offers a range of finance products on new and used Citroën, Peugeot and DS Automobiles models. This guide will lay them out for you as clearly and simple as possible. 

Car finance options

Our range of finance plans include: 

Personal Contract Purchase (PCP)

If you want a flexible plan that lets you budget with confidence and own your vehicle, PCP could be the right choice. 

With PCP, you make fixed monthly payments on a new or used car. At the end of your contract you have three options:

1. Part exchange your car for a new one and start a new contract after paying any excess mileage and/or damage (if applicable). 

2. Keep your car, pay the Guaranteed Future Value (GFV) and it's yours. 

3. Return your car to us. (Additional charges could be necessary if excess mileage or damage have reduced its value below the GFV).

Personal Contract Hire (PCH)

If you're not concerned about outright ownership, PCH is another budget-friendly form of finance. Here's how it works:

  • Pay the advance rental fee when ordering your car. PCH is essentially a rental agreement and, as with all rental agreements, a payment in advance is required. Typically, this will be six months rental (although some deals require up to nine months in advance). This can be discussed further with your dealer. 
  • Agree on the annual mileage allowance. This will help determine your monthly rental payments, so be realistic with the amount you choose. 
  • Return the car at the end of your contract, paying any excess mileage or damage charges (if applicable).

Personal Finance Lease (PFL)

If you want a flexible payment choice but don't need the option of owning your car, PFL lets you tailor monthly rental payments by varying the duration of the contract or agreeing a final lump sum repayment (known as a balloon payment). At the end of your contract you can: 

  • Sell your car to a third party on our behalf. If it sells for less than the balloon payment value, you pay the difference to us. If it's more, you pocket the surplus.
  • Part exchange your car for a new vehicle with one of our dealers. 
  • Return your car, paying any excess mileage or damage charges (if applicable).
  • Extend your lease, paying the balloon payment and a nominal rent until you return the car or sell to a third party.

Conditional Sale

If you want a straightforward way to finance the purchase of a new or used car, Conditional Sale is similar to a personal loan. Here's how it works:

  • You pay a deposit at the beginning of your contract. You can also trade in your existing vehicle as part of the payment.
  • Agree a monthly payment that works for you. 
  • Enjoy! Once your contract ends and all the payments have been made, the car is yours.

Mobility Pass

Designed for Electric Vehicle customers financing through Personal Contract Hire, Mobility Pass allows you to build a fund towards the occasional rental of a petrol or diesel vehicle. With a 33% bonus that we will add to your fund at the start, plus eligibility for a 20% discount on all rentals from our dealers, Mobility Pass can seriously boost your spending power, when compared with standard private rental.

Duration of finance plans

The length of your contract will depend on the age, make and model of the car you've chosen, as well as the type of finance you're considering. However, most plans are available in 24, 36 and 48-month agreements. The longer the agreement, the lower the monthly payment.

Which car finance option is best for you? 

With such a range of accessible plans available, driving the car of your choice could be well within your reach. 

Before deciding though, you'll need to calculate the deposit amount you'll be able to put down and the monthly payment cost you can afford. If you need to find out more about PSA Finance, visit our FAQs page or contact us.