Personal Contract Purchase (PCP)

Personal Contract Purchase, also known as PCP is a form of funding whereby an individual leases a vehicle for a fixed period of time for a set monthly payment or charge. PCP is a very popular choice for finance offering:

• low monthly payments

• flexible with optional final lump sum payment to secure ownership

• ideal if you plan to change your car at the end of the contract

Personal contract purchase is one of the most popular choices for motor finance due to its flexibility and low monthly repayments. Applicants make an initial payment followed by a set number of monthly payments and at the end of the contract, you have the option of making a balloon payment in order to become the registered owner of the car or you can simply return the vehicle without any further obligation.

The monthly charge is governed by the initial cost of the vehicle, the mileage covered, the period of the agreement and the estimated value of the vehicle at the end of the agreement - as you are only repaying the difference between the cash price and the optional lump sum, you are only financing the depreciation of the vehicle.

Additionally, features such as basic servicing to total vehicle management and maintenance packages can be included if required. PCP is an alternative to hire purchase, HP being the traditional method of financing. Personal contract purchase is covered by the protections as set out in the Consumer Credit Act.

see also

Breakdown Cover | Vehicle Recovery & Assistance
Motor Insurance
Registration Numbers | Personal Number Plates
Vehicle Warranties
Car Finance & Guaranteed Vehicle Credit
Fast PayDay Loans
GPS Satellite Navigation
Mobile Phones (inc. NEW iPhone O2 OFFERS)