Personal Contract Purchase (PCP)
Lower monthly payments, with the flexibility to decide what happens at the end.
Guaranteed Future Value
Protected against the car's value dropping below the GFV.
Lower monthly payments
than HP on the same car, as you're not paying off its full value monthly.
Keep it, hand it back or change
Your choice at the end, or change early.
What is PCP?
PCP is the most popular way to drive a prestige car in the UK. You pay a deposit, then fixed monthly payments. But instead of paying off the car's full value, you only pay off the difference between its price today and its Guaranteed Future Value (GFV), plus interest. The GFV is what the lender guarantees the car will be worth at the end, and it's set aside as an optional final balloon payment. The result? Lower monthly payments than HP on the same car, with total flexibility at the end.
Your options at the end
Keep the car
Pay the final balloon payment and the car is yours to keep.
Hand it back
Return it with nothing more to pay, within your agreed mileage and in fair condition.
Part-exchange
If it's worth more than the GFV, put the equity towards your next car.
Change car at any time
You don't have to wait until the end. You can settle your finance and change car during the agreement. Many of our customers change after two to three years.
Who PCP suits
Drivers who want lower monthly payments and like to change car every few years. PCP is most commonly used on cars from around £25,000 to £80,000.
Key details
- Terms typically up to 48 months
- The car is typically no more than 5 years old at the start. Lender criteria change regularly, so if your car is older, ask us and we'll check what's possible
- You agree an annual mileage at the start
Things to consider
- Going over your agreed mileage can mean excess mileage charges if you hand the car back
- Damage beyond fair wear and tear can lead to charges on hand-back
- Ownership passes to you once the final balloon payment is made
- The balloon is a lump sum, so it's worth planning ahead for how you'd like to handle the end of your agreement: pay it, part-exchange, or hand the car back
- All finance is subject to status and income
Frequently asked questions
Can I pay off my PCP early?
Yes. You can request a settlement figure and clear the agreement at any time.
What is a Guaranteed Future Value?
It's the minimum the lender guarantees your car will be worth at the end, which protects you if the market value drops.
Can I get PCP on a used car?
Yes, typically on cars up to around 5 years old. Ask us about older cars.
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