Personal Contract Purchase (PCP)
Like conditional sale and hire purchase, with personal contract purchase (PCP), you pay a deposit and then the remaining amount borrowed is split into monthly instalments. PCP is great if you want to change or upgrade your car or motorcycle* at the end of the agreement.
With PCP, we guarantee the minimum the vehicle will be worth at the end of your agreement based on the agreed annual mileage and maintenance of the vehicle (any excess mileage and/or damage may incur additional charges). This value is known as the ‘Guaranteed Minimum Future Value’ and by deferring this amount to the end of the term, you could benefit from lower fixed monthly payments compared to our HP and CS products.
The finance is secured against the vehicle. Repayments are fixed throughout the agreement and spread equally throughout the term, which can be up to four years (48 months).
At the end of the agreement, you’ll have three options:
- Part-exchange it – use any value left in your vehicle to part-exchange it for a new one
- Buy it – pay off the final payment (Guaranteed Minimum Future Value plus the Option to Purchase Fee (OTP)) in one lump sum and become the legal owner
- Hand it back – simply hand back the vehicle and the keys, pay any charges incurred, and walk away
*Terms may vary