Arranging Finance

Personal Contract Purchase (PCP) Finance

Find out whether Personal Contract Purchase (PCP) finance is right for you

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What's Personal Contract Purchase?

Personal Contract Purchase (PCP) is a flexible finance option designed to help you purchase a car over a fixed period of time. You'll pay for the car via monthly repayments and at the end of your term you'll have three options:

  1. Part exchange or swap the car for a new one and take out a new PCP agreement
  2. Buy the car and become its legal owner by paying the Optional Purchase Payment (sometimes known as a ‘balloon payment’ or 'Guaranteed Minimum Future Value') outlined at the start of your agreement
  3. Return the car and end the agreement; be aware the lender may charge you for any unreasonable damage to the car, or if you’ve exceeded the agreed annual mileage

When you enter into a PCP deal, you'll pay an initial deposit for the car followed by monthly payments over a number of months (usually between 12 and 48) agreed by you and one of our trusted lenders. You won’t own the car during your initial agreement as you're just covering the cost of its depreciation, plus interest; not to purchase it.

Personal Contract Purchase advantages and disadvantages

PCP is a great way of financing a used car if you don’t want to be tied down to owning the car at the end of your agreement. You can keep your options open and choose the best option to suit your needs when the time comes.

When you take out a PCP plan you'll need to be aware that if you don’t want to own the car after your last monthly payment, you’ll need to return it in a condition agreed by you and the finance lender.

If you exceed your annual mileage cap, then you could be charged per mile over your allowance. If you return the car in an unsatisfactory condition, you may also be penalised.

PCP Pros

PCP Cons

You have the freedom to return the
car at the end of your agreement

You'll need to stick to agreed wear
and tear limits or face penalty charges

You have the option to purchase the
car or take out a new PCP deal

You'll need to stick to an agreed annual
mileage cap or risk being charged

You may only have to pay a small
deposit to start your PCP plan

you’ll need to make a large payment at
the end of your agreement to own the vehicle.


Finance your next used car your way

If you feel confident that you know what you want from a car finance agreement, then you can go right ahead and arrange your finance online with CarStore. It's simple, easy and quick to do.

However, we know that you may want someone to help you understand everything that's involved with finance. Our personal advisors will be happy to listen to your individual requirements and present you with all the information using plain, jargon-free language. 

Talk to us online, over the phone or contact a CarStore Centre with any questions you may have.