PCP, flexible car finance
Lower typical monthly payments with a choice to keep, part exchange or hand the car back at the end.
About pcp
Personal Contract Purchase, or PCP, is a car finance agreement where you pay a deposit and regular monthly payments, then face a choice at the end of the term. You can usually pay a final balloon payment to keep the car, hand it back, or use any equity toward a new agreement. Because the monthly payments often cover depreciation rather than the full price, they can be lower than some other finance routes. The balloon value, mileage limit, interest and any fees are all set by the lender and the specific agreement, so they are confirmed during your enquiry rather than presented as fixed figures here.
Who might choose PCP?
PCP can suit people who want lower monthly payments than a typical loan and like the flexibility of deciding at the end whether to keep the car, hand it back, or start again with a new one.
It is commonly used for personal car finance, though business users can also consider it. If you like changing cars every few years and want options at the end rather than a single outcome, PCP is worth comparing with leasing and hire purchase.
Discuss your situationKeep, hand back, or move on
At the end of a PCP agreement you typically have three options: pay the balloon payment to own the car, hand it back subject to mileage and condition, or part exchange it if it is worth more than the final payment. This flexibility is the main difference from a straight lease.
The balloon payment is set by the lender based on an estimate of the car value at the end, and mileage affects it. Understanding these before you start helps you choose a realistic agreement.
Questions worth thinking about
You do not need answers to all of these before getting in touch, but they can help shape the conversation.
Want to talk it through with Tony?
Call Tony Nolan on 07815 098217 or send an enquiry and he will come back to you.
PCP questions
Get a PCP quote
Tell us the kind of car you want, your rough mileage and deposit, and whether it is personal or business. We will come back with how a PCP could look.
Or email kat@ask4leasing.co.uk