Personal Contract Purchase

What is it?

Personal contract purchase (PCP) is a method of finance that allows private individuals to finance a vehicle on deferred payment terms.

How does it work?

Our PCP solution is based on a conditional sale agreement whereby the normal arrangement is that you (the buyer) agree to pay for the vehicle over a fixed term and mileage. At the end of that agreement you will have three choices:

  • Make the final payment and keep the vehicle
  • Hand back the vehicle and, assuming it is returned in a condition commensurate to its age and mileage, it has a full service history and that the agreement mileage has not been exceeded, there is no further payment to pay
  • Use any equity in the vehicle (the difference between the amount still owed and the market value of the vehicle) as an initial payment on another vehicle

What are the benefits?

  • PCPs are a widely available and popular form of personal finance
  • Low initial costs
  • Fixed monthly repayments
  • Guaranteed future values (MGFV)
  • Optional fixed cost service and maintenance plans
  • End of contract flexibility