Personal Contract Purchase (PCP)

Car finance option Personal Contract Purchase (PCP) is a type of car finance that allows you to buy a more expensive car at a lower monthly cost. At the end of a Personal Contract Purchase agreement, you have three choices: return the car, pay a balloon payment to keep the car, or use the car as a part exchange on finance for a new car.

“Out of all the options, Personal Contract Purchase best suited my circumstances.”

“I decided to choose Personal Contract Purchase because of the three options at the end of the agreement. I like that I can choose between paying the balloon payment to own the car, refinancing on a new car or returning the car. It means I have more flexibility which is something I look for in a finance package.”

- Jack from Hammersmith

Personal Contract Purchase: Key Features

  • Suitable for those with a Good credit rating
  • Ideal for those with a large deposit
  • Lower monthly payments - you only pay the difference between the purchase price and Guaranteed Future Value
  • Depreciation is covered in the monthly payments
  • Monthly cost is driven by annual mileage
  • Three options at the end of a PCP agreement: return the car to the dealership; pay the balloon payment to own the car (set at the start of the finance agreement); part exchange the car on a new finance agreement.

Unsure if PCP is the right option for you?

We discuss PCP in more detail over at our car finance glossary page and include common question and answers on this car finance option, please visit: Personal Contract Purchase explained

Speak to one of our Customer Advisors who will be happy to discuss your car finance options with you. Call 0800 1777 290 or apply for car finance today.

Alternatively, if you'd like to learn more about the other car finance options available, please visit our interactive Car Finance Options Tool.