1. Personal Finance
  2. Personal Contract Purchase
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Personal Contract Purchase (PCP)

Personal Contract Purchase is a flexible plan that allows you to borrow money for a vehicle, which you then pay back in monthly instalments. At the end of the contract, PCP gives you the option to return the vehicle, upgrade it for another, or make one final payment to own it.

Find out more about the features and risks of getting a car on finance with Personal Contract Purchase below and browse our handy frequently asked questions.
  • Key features of Personal Contract Purchase

    • Monthly payments are kept low as an amount is deferred to the end of the agreement
    • Flexible options at the end of a contract – keep, upgrade, or return the car.
    • Choosing the option of returning the car at the end of the agreement avoids the depreciation risk.
  • Risks of Personal Contract Purchase

    • Each car comes with an agreed mileage limit which must be kept to, otherwise you will be charged an additional excess mileage charge.
    • If your car is damaged beyond regular wear and tear there is a risk of additional charges.
    • You do not own the car until you make the final payments at the end of your finance agreement.
    • If you fail to make the payments set out in your finance agreement, your car could be repossessed, and your credit rating may be adversely affected.


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How Personal Contract Purchase (PCP) works

Personal Contract Purchase (PCP) is a way to borrow money to buy a car. You pay back the money every month, and at the end of the contract, you can choose to return the car, upgrade, or make one final payment (Optional Final Payment) to own it. You won’t own the car until the end of the agreement and the Optional Final Payment has been made. We’ve split the process into four stages below to give a clear explanation of Personal Contract Purchase:

1. Deposit

  • The deposit is the amount you pay upfront at the start of the agreement, and it will determine how much you need to borrow.
  • The deposit ranges from 0 to 35% of the vehicle price.
  • The larger your deposit, the less you’ll have to borrow and the smaller your monthly payments will be.

2. Monthly Payments

  • Your monthly payments will be fixed throughout your agreement and are affected by the amount of your deposit.
  • When you apply for a PCP finance agreement, Toyota Financial Services calculates how much it thinks your car will be worth at the end of the agreement, this is called the Guaranteed Future Value (GFV). The GFV is used to determine how much you’ll have to pay at the end of your finance agreement in order to own the car.
  • To help you manage your monthly payments, you are invited to join My Finance, a convenient way to manage your finance agreement online.


3. Car Usage

  • Your PCP agreement will come with rules around car usage that help you avoid any further charges. These will determine how many miles you can drive throughout your agreement.
  • Your mileage limit will be communicated at the start of your agreement.

4. End of Contract

  • At the end of your PCP agreement, you have the option to return the car, pay the Optional Final Payment to own the car, or upgrade.
  • If the car is worth more than the Guaranteed Future Value (GFV ) then you can put that extra money towards your next car.

Unsure about any finance terminology? Take a look at our finance glossary.

Personal Contract Purchase Frequently Asked Questions

Take a look at our frequently asked questions on getting a car on finance with PCP.

0 to 35%.

Choose a term from 24 to 42 months*


*Maximum terms vary according to car model.



Yes. You decide your annual mileage at the start of your finance agreement.



Your finance agreement will state that the car must be maintained in line with the manufacturer’s guidelines.

The Guaranteed Future Value (GFV) is the final payment which is secured by the value of the car. If the car is worth less than the GFV, you can choose to return it to the finance company with nothing further to pay, subject to terms and conditions. If the car is worth more than the GFV you get the equity.

If you decide to part exchange, you will need to settle your finance agreement, you can do this at any time. For regulated finance agreements, an early settlement amount is calculated in accordance with the Consumer Credit (Early Settlement) Regulations 2004.

Yes. Ownership will pass to you once all of your monthly payments and the final payment (also known as the Guaranteed Future Value) have been paid, or if you settle all applicable payments earlier.

Yes, but only if you want to keep the car.

You can upgrade the car, return the car, or pay the Guaranteed Future Value (GFV)  to own the car**


** Keep - pay the GFV and own your car;

Return - Hand the car back

Upgrade - Part exchange the car for a new car