What is PCP?

PCP or Personal Contract Purchase is designed to reduce your payments by differing part of your payment at the end of the agreement. Monthly payments, deposit, annual mileage and final payments can all be adjusted to your needs and can be settled at anytime. PCP is a unique product to the motor trade and offers great flexibility to purchase your next new vehicle.

Personal Contract Purchase (PCP) FAQs

1. What are the benefits of PCP?

It’s a flexible way to make payments on a car and have more options at the end of the term. Your monthly payments and estimated mileage are fixed. A balloon payment is deferred to the end, making payments lower. And at the end, you can either make the final payment to own the vehicle or simply return it.

2. What are the disadvantages of PCP?

You do not automatically become the legal owner of the car at the end of the contract – the balloon payment must be made. It also needs to be paid if you decide to sell the vehicle on to a private buyer.

3. Does PCP include insurance?

Your car insurance is separate to your finance agreement.

4. Can you sell a car on PCP?

Yes, you can sell or trade in for another vehicle. Any extra value you receive from this sale – on top of the balloon payment – can be kept.