Vehicle eligibility
PCP is aimed at newer, higher value vehicles, with a maximum vehicle age set at:
- 10 years from vehicle registration - petrol, diesel and hybrid cars
- 8 years from vehicle registration – electric cars
- 9 years from vehicle registration – Motorcycles
Why PCP is a popular option for customers
- Suits private individuals, sole traders and partnerships, who would like to buy a vehicle and spread the cost over a fixed monthly period, up to 49 months
- Lower monthly payments compared to other products
- Gives customers more choice of vehicles within their budget
- Options at the end of their agreement - pay to keep the vehicle, part-exchange into a new finance deal, or hand-it back
- The ability to upgrade their vehicle more frequently
The product details
How it works
Your customers only finance part of the vehicle’s value rather all of it. They put down a deposit of around 10% of the full vehicle value, then make fixed monthly payments, spread equally throughout the term, including interest.
End options
At the end of their agreement, they get three clear choices:
- Part-exchange the vehicle and upgrade
- Pay the final balloon to become the legal owner of the vehicle
- Hand it back, and walk away
Final payment
The final balloon payment is made up of the ‘option to purchase’ (OTP) fee and the Guaranteed Minimum Future Value (GMFV) of the vehicle.
We guarantee the minimum future value of the vehicle, based on agreed annual mileage and maintenance of the vehicle
Things to keep in mind
- Excess mileage, and fair wear and tear charges may apply.
- Finance is secured against the vehicle – your customer won’t own the vehicle until all obligations as part of the agreement are satisfied.
- If your customer is unable to keep up with their payments, we may repossess the vehicle.
- PCP and balloon payments are not available for restricted vehicles (e.g. taxis, driving schools, sub-hire, non-standard imports or vehicles over 3.5 tonnes)
- We don’t refinance balloon payments