Key features of Personal Contract Purchase
Risks of Personal Contract Purchase
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:
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.
No.
Yes. You decide your annual mileage at the start of your finance agreement.
No.
Yes.
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.
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
