Understanding Personal Contract Purchase

Understanding Personal Contract Purchase (PCP)

Personal Contract Purchase is a flexible finance solution that lets you drive more car for your money while keeping your options open.

PCP works by deferring a portion of the car’s value to the end of the agreement – this is often called a guaranteed future value or GFV. You only make payments on the amount remaining after taking the deposit and GFV into account, so your monthly payments will be lower compared to other methods of finance.

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

  1. If you fancy a change you can simply part exchange your car for a different vehicle.

  2. If you love your vehicle you can pay the option to purchase fee (if applicable) and the optional final payment then take full ownership of the vehicle

  3. If you don’t want to upgrade or keep it, as long as it’s been loved, you can simply give it back. (excess mileage and/or wear and tear charges may be payable)

Important information to consider

  • It is important that you keep up to date with your monthly repayments, so please contact the finance company if you are having any difficulties as the vehicle may be at risk if you do not.

  • You may end your agreement earlier than the full term. However, how far you are in to your agreement will affect the final amount left to pay.

  • If you exceed agreed mileage at the start of your agreement and intend to return the vehicle, excess mileage charges will apply.

  • Keep the vehicle in good condition as this will affect the value of the vehicle. You may be charged for any damage that goes beyond fair wear and tear.

Find out more about our range of finance products.

Quick and easy to arrange

The process is straight forward and can be setup and approved same day.

Fixed monthly payments

Giving you the ability to better budget for your new vehicle.

Flexible Terms

Adjust the term until you get a monthly repayment that suits you.