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What is Personal Contract Purchase?

With Personal Contract Purchase (PCP), you can purchase your vehicle with a deposit, monthly payments and, if you wish to own the vehicle at the end, a balloon payment (also known as the Guaranteed Future Value). Since you won’t have to pay for part of the car until the end of the contract, this gives you additional flexibility.

How does PCP work?

PCP is a straightforward agreement with easy-to-meet payments.

PCP allows you to budget effectively with multiple options at the end of your contract. This allows room for flexibility especially if you’re unsure what you want to do with your vehicle at the end of your contract, or require lower monthly payments than a standard Hire Purchase Contract.

At the end of the agreement, you have three options:

  1. Part exchange your vehicle
    You can part exchange for a new one and start another contract.
  2. Keep your car
    You’ll need to pay an optional final payment (also known as the Guaranteed Future Value (GFV) or Balloon Refinance) and the vehicle will be yours. If you do not have the money to pay this in full, you may be able to refinance the remaining amount and own the car outright once all the payments have been made.
  3. Return your vehicle to us
    Should excess mileage and damage impact the value of your vehicle it could be worth less than the GFV, meaning that additional payment could be necessary.

Features & Benefits of PCP

  • Multiple options for the end of your contract.
  • Set monthly payment tailored to you.
  • You need not worry about the future resale value of the car as we set the GFV
  • Finance is available on both new and used vehicles.