PCP (Personal Contract Purchase) is the most popular finance product for buying a new car in the UK.
There are 3 payment phases with PCP:
- An initial deposit - you can usually choose the amount
- Monthly repayments over the term of your agreement - the value will depend on the term length, the APR (Annual Percentage Rate) and the cost of the car
- At the end of the agreement you are left with an amount outstanding (known as the Guaranteed Minimum Future Value). You can either pay off the remaining balance, part-exchange your car for another one or simply give the car back.
Many offers include a deposit contribution from the car manufacturer or dealer. It’s added to your deposit to reduce the overall cost of the finance and the vehicle.
There may be other finance options available.
To learn more about different finance options, visit our