Personal Contract Purchase (PCP) is another popular car finance lending option we offer, comprising of low fixed monthly payments over an agreed term.
Unlike hire purchase and leasing agreements, you get the option of either keeping the car or returning it at the end of a PCP agreement.
Monthly payments do not cover the full cost of the vehicle but instead the depreciation of the vehicle over the agreement term. To secure ownership of the vehicle at the end of the agreement, you would need to make a final balloon payment.
Alternatively, if you choose to simply return the vehicle, then there are no further payments owed and you can even use any positive equity on vehicle towards a deposit on your next car.
Apply for PCP today and receive an instant decision without affecting your credit score.
Step 1:
Complete a quick online application that does not affect your credit profile.
Note: at this stage it doesn't matter if you have yet to find a car, or if you don't know exactly how much you need to borrow.
Step 2:
Once your application has been accepted a friendly consultant will make contact with you to discuss your requirements and finance options.
Your consultant will be dedicated to support you throughout the process and to ensure you get the fairest agreement that suits your individual circumstances.
Step 3:
Once you have agreed your loan terms your dedicated consultant can also help you find the car you want and work hard to get you the best deal across our trusted national dealer network.
Option 1 - Own the car
By paying the optional balloon payment (outstanding cost of the vehicle) after your final monthly instalment, you can secure complete ownership of the car.
Under your ownership you are then free to drive the car as you wish with no mileage limits as you had before.
Option 2 - Return the car
After your final monthly instalment you can simply return the car to us with nothing else owed (subject to excess mileage and return conditions).
You can then look at acquiring another car or a newer model. Any positive equity left on the car you can use for a deposit on your new car (subject to terms and conditions).
Choosing PCP as your finance option can be perfect if you want to keep costs low and your options open.
PCP deals are usually only available to individuals with a good or excellent credit rating, so if your credit score has had a few knocks, Hire Purchase (HP) might be a better option for you.
The choice of multiple settlement options and low monthly costs can make PCP an attractive finance option. See other advantages of PCP below.
Apply online today for a no obligation quote, without affecting your credit score.
Why Choose PCP?
Choose the deposit amount and contract length to suit you
Driving a newer car for less
Lower payments, making budgeting easier
Flexibility on your end of contract options
Rates start from 9.9% APR.
Representative example: borrowing £7,500 over 48 months with a REPRESENTATIVE APR of 24.9%, an annual interest rate of 24.9% (Fixed) and a deposit of £0.00, the amount payable would be £238.10 per calendar month, with a total cost of credit of £3,928.80 and a total amount payable of £11,428.80.
Rates may differ as they are dependent on individual circumstances. Rates from 9.9% APR: the exact rate you will be offered will be based on your circumstances, subject to status.
Work out your monthly budget using our PCP Finance Calculator
Terms and conditions apply. Subject to status
Applying for car finance is a very simple process. And to make the process as fast as possible for you, this what you will need to have to hand.
1. Driving License
You'll need to be able to prove your identity in order to qualify for finance. The simplest way to do this is to use your driver's licence, as this is the most common form of identification accepted by vehicle lending companies.
You may be able to use your passport as proof of identity in some cases, however this will depend on the lender we match you with.
2. Proof of Income
You may be required to supply between one to three months’ worth of payslips or bank statements
3. Address History
Because traceability is a crucial component of your application, you may be required to supply your address history for the previous one or two months when applying for car finance
Apply online today for a no obligation quote, without affecting your credit score.
If you want to enjoy low monthly payments, with a choice of settlement options, PCP is definitely worth considering. It’s an ideal solution if you’re looking to change your car regularly. With the option to Part-exchange the vehicle at the end of your contract, you can easily upgrade without the hassle of selling the car yourself. Plus, any Positive Equity can be used as a deposit towards your next vehicle.
A Balloon Payment is a final payment owed to the lender at the end of your contract. Deferring part of the cost of your loan as a balloon payment is an effective way of reducing your monthly repayments. With PCP, the balloon payment is optional, depending on how you wish to settle the agreement.
If you wish to own the vehicle at the end of the contract, the balloon must be paid. Alternatively, if at the end of your agreement, the vehicle is worth more than the estimated residual value, you can use the equity in Part-exchange towards the deposit for your next vehicle. Or you can simply return the vehicle to the leasing company with nothing further owing*.
*Subject to excess mileage and return conditions
The Balloon Payment for PCP is agreed by the lender at the start of your agreement, based on the vehicle’s estimated Residual Value (RV); the amount your vehicle is worth at the end of your contract. Sometimes referred to as the Guaranteed Future Value (GFV), the residual value is calculated based on the Depreciation of the vehicle over the length of your contract, taking into account the vehicle’s age, condition and your agreed Annual Mileage. If at the end of your agreement, the vehicle is worth more than the estimated residual value, you can use the equity as a deposit towards your next vehicle.
Your mileage is a key component to the Guaranteed Future Value (GFV) or Residual Value (RV) of your vehicle, (the amount your car is deemed to be worth at the end of your agreement). Exceeding your mileage limit will impact the GFV of the vehicle and this will normally result in an additional charge (known as excess mileage). But don’t worry – while your mileage is agreed at the start of your agreement, it can normally be renegotiated with the lender during the agreement.
PCP deals are typically only available to individuals with a good or excellent credit rating, so if you have a less-than-favourable credit score you may want to consider a finance option available to a wider range of credit backgrounds. For example, with Hire Purchase (HP) the cost of your loan is still divided into affordable monthly payments, but this time it covers the full cost of the vehicle and you own it at the end of the contract. Lease Purchase is similar to PCP where you have the option to defer part of the cost to the end of the agreement, but differs in that the final Balloon Payment is not optional. Find out more about bad credit car finance and how you may be eligible.
Provided you have repaid 50% or more of the total amount owed – including any interest and fees, you may be eligible to end your agreement early through a voluntary termination. This allows you to end your contract and return the car without any additional charges, so long as the car is in an acceptable condition. If the car has sustained damage beyond the lenders fair wear and tear conditions, you will likely face a charge.
Yes, at Creditplus our PCP packages can be tailored to suit your individual circumstances. So, if you’re looking for a no deposit PCP agreement, simply get in touch using our quick, No-obligation Application form and a member of our team will contact you shortly.
Changing your car before the end of your contract is sometimes possible, but if your car is worth less than the amount you still owe, you will be required to pay the difference. The difference is sometimes referred to as Negative Equity.
PCP and HP are both great alternatives to buying a car outright, but there are a few differences worth noting. PCP offers you a choice of three settlement options at the end of your agreement. You can either; return the car to the lender, Part-exchange it, or pay a Balloon Payment to own the car yourself. With HP, there is no option to return the car or part-exchange it. Instead, the cost of owning the vehicle is evenly spread across your monthly repayments, and at the end of the agreement, the car is yours.
The choice of settlement options and low monthly cost makes PCP an attractive option, but it may not be suitable for everyone. For example, if you’re regularly driving long distances you may find the mileage restrictions limiting. And, if you decide you want to own the car at the end of the contract, you’ll need to budget for the Balloon Payment. PCP deals are also usually only available to individuals with a good or excellent credit rating, so if your credit score has taken a few knocks, you may want to consider a Hire Purchase (HP) instead.
If you want to enjoy low monthly payments, with a choice of settlement options, PCP is definitely worth considering. It’s an ideal solution if you’re looking to change your car regularly. With the option to Part-exchange the vehicle at the end of your contract, you can easily upgrade without the hassle of selling the car yourself. Plus, any Positive Equity can be used as a deposit towards your next vehicle.
A Balloon Payment is a final payment owed to the lender at the end of your contract. Deferring part of the cost of your loan as a balloon payment is an effective way of reducing your monthly repayments. With PCP, the balloon payment is optional, depending on how you wish to settle the agreement.
If you wish to own the vehicle at the end of the contract, the balloon must be paid. Alternatively, if at the end of your agreement, the vehicle is worth more than the estimated residual value, you can use the equity in Part-exchange towards the deposit for your next vehicle. Or you can simply return the vehicle to the leasing company with nothing further owing*.
*Subject to excess mileage and return conditions
The Balloon Payment for PCP is agreed by the lender at the start of your agreement, based on the vehicle’s estimated Residual Value (RV); the amount your vehicle is worth at the end of your contract. Sometimes referred to as the Guaranteed Future Value (GFV), the residual value is calculated based on the Depreciation of the vehicle over the length of your contract, taking into account the vehicle’s age, condition and your agreed Annual Mileage. If at the end of your agreement, the vehicle is worth more than the estimated residual value, you can use the equity as a deposit towards your next vehicle.
Your mileage is a key component to the Guaranteed Future Value (GFV) or Residual Value (RV) of your vehicle, (the amount your car is deemed to be worth at the end of your agreement). Exceeding your mileage limit will impact the GFV of the vehicle and this will normally result in an additional charge (known as excess mileage). But don’t worry – while your mileage is agreed at the start of your agreement, it can normally be renegotiated with the lender during the agreement.
PCP deals are typically only available to individuals with a good or excellent credit rating, so if you have a less-than-favourable credit score you may want to consider a finance option available to a wider range of credit backgrounds. For example, with Hire Purchase (HP) the cost of your loan is still divided into affordable monthly payments, but this time it covers the full cost of the vehicle and you own it at the end of the contract. Lease Purchase is similar to PCP where you have the option to defer part of the cost to the end of the agreement, but differs in that the final Balloon Payment is not optional. Find out more about bad credit car finance and how you may be eligible.
Provided you have repaid 50% or more of the total amount owed – including any interest and fees, you may be eligible to end your agreement early through a voluntary termination. This allows you to end your contract and return the car without any additional charges, so long as the car is in an acceptable condition. If the car has sustained damage beyond the lenders fair wear and tear conditions, you will likely face a charge.
Yes, at Creditplus our PCP packages can be tailored to suit your individual circumstances. So, if you’re looking for a no deposit PCP agreement, simply get in touch using our quick, No-obligation Application form and a member of our team will contact you shortly.
Changing your car before the end of your contract is sometimes possible, but if your car is worth less than the amount you still owe, you will be required to pay the difference. The difference is sometimes referred to as Negative Equity.
PCP and HP are both great alternatives to buying a car outright, but there are a few differences worth noting. PCP offers you a choice of three settlement options at the end of your agreement. You can either; return the car to the lender, Part-exchange it, or pay a Balloon Payment to own the car yourself. With HP, there is no option to return the car or part-exchange it. Instead, the cost of owning the vehicle is evenly spread across your monthly repayments, and at the end of the agreement, the car is yours.
The choice of settlement options and low monthly cost makes PCP an attractive option, but it may not be suitable for everyone. For example, if you’re regularly driving long distances you may find the mileage restrictions limiting. And, if you decide you want to own the car at the end of the contract, you’ll need to budget for the Balloon Payment. PCP deals are also usually only available to individuals with a good or excellent credit rating, so if your credit score has taken a few knocks, you may want to consider a Hire Purchase (HP) instead.
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Jonathan Cross
Martin Dear
James Daniel Forrest
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