Benefits of Personal Contract Purchase

Flexible End-of-Term Options
At the end of the agreement, you can:
• Buy the car by paying the final balloon payment
• Return the car with no further payments (as long as it's within mileage and condition limits)
• Part-exchange it for a new vehicle and start a new PCP or lease deal

Lower Monthly Payments
Because you're only financing part of the vehicle’s value (not the full amount), monthly payments are often lower than with traditional HP or car loans.

Personal Contract Purchase (PCP) is a flexible car finance option that combines low monthly payments with the option to buy the vehicle at the end of the agreement — or simply hand it back.

You choose a contract length (typically 2–4 years), a mileage allowance, and a deposit (or initial payment). Your monthly payments cover part of the car’s value, not the whole amount. At the end of the contract, a final “balloon” payment (Guaranteed Future Value) determines whether you keep the car or return it.

It’s ideal for drivers who want the flexibility to own, upgrade, or return the vehicle later on — without committing to full ownership up front.

Personal Contract Purchase (PCP) is a flexible car finance option that combines low monthly payments with the option to buy the vehicle at the end of the agreement — or simply hand it back.

You choose a contract length (typically 2–4 years), a mileage allowance, and a deposit (or initial payment). Your monthly payments cover part of the car’s value, not the whole amount. At the end of the contract, a final “balloon” payment (Guaranteed Future Value) determines whether you keep the car or return it.

It’s ideal for drivers who want the flexibility to own, upgrade, or return the vehicle later on — without committing to full ownership up front.