PCP car finance
We search 20 lenders in 2 mins. No credit impact. Buy from any dealer.Personal Contract Purchase gives you low monthly payments, flexibility at the end of the term and access to a newer car more often.
- ✓Low fixed monthly payments
- ✓Optional final ‘balloon’ payment
- ✓Return, keep or upgrade at the end
- ✓Deposit or no-deposit deals
PCP car finance explained
Personal Contract Purchase (PCP) is the UK's most popular car finance product. It works by splitting the total cost of the car into three parts: an optional deposit, fixed monthly payments over 24–48 months, and a final optional balloon payment (also called the Guaranteed Minimum Future Value, or GMFV) at the end of the term.
Because most of the car's value is deferred to the balloon, PCP monthly payments are noticeably lower than HP for the same car — which is why it's especially popular for newer, more expensive vehicles.
At the end of your PCP agreement you have three choices: (1) pay the balloon and keep the car, (2) hand the car back and walk away with nothing further to pay, or (3) use any equity in the car towards a deposit on a new PCP agreement. This flexibility is a big part of PCP's appeal.
PCP does come with mileage limits agreed at the start of the term. If you exceed them, an excess-mileage charge applies at the end (typically 5–25p per extra mile). Our advisers will help you pick a realistic annual mileage so you don't get caught out.
PCP suits drivers who like to change their car every 2–4 years, want lower monthly payments, and don't necessarily want to own the car at the end. It's also available with bad credit via our specialist lender panel.
Pros and cons of PCP car finance
- ✓Lower monthly payments than HP for the same car
- ✓Three flexible options at the end of the term
- ✓Access to newer, more premium vehicles
- ✓GAP-style protection built into the GMFV
- ✓Available with or without a deposit
- ✓PCP with bad credit possible via specialist lenders
- !Mileage limits with excess-mileage charges if exceeded
- !You don't own the car until the balloon is paid
- !Damage beyond fair wear and tear can be charged at return
- !Total cost is usually higher than an equivalent HP
Car finance calculator
These estimates are for illustration only. HP repays the full loan over the term; PCP defers a Guaranteed Future Value (assumed 40%) to the end of the agreement, giving a lower monthly payment. Your actual rate and payment depend on your personal circumstances.
PCP car finance FAQs
How car finance works
Apply in 2 minutes
Tell us the car you want, how much you want to borrow, and a monthly payment that fits your budget. We'll match you to the best deal from our panel of lenders.
Pick a car from any dealer
Once accepted, choose a new or used car — or part-exchange your current one — from a reputable UK dealer. We run the full checks for you.
Drive away the same day
Arrange same-day collection or home delivery. Get behind the wheel and enjoy your new car.
HP vs PCP vs personal loan
| Finance feature | Hire Purchase (HP) | Personal Contract Purchase (PCP) | Personal loan |
|---|---|---|---|
| Requires initial deposit | Optional | Optional | × |
| Car is yours at the end | ✓ | Optional (balloon) | ✓ |
| Fixed monthly payments | ✓ | ✓ | ✓ |
| Optional final (balloon) payment | × | ✓ | × |
| Avoid excess mileage charges | ✓ | × | ✓ |
| Secured against the car | ✓ | ✓ | × |
| Support with vehicle issues | ✓ | ✓ | × |
| Available with bad credit | ✓ | ✓ | ✓ |
We search multiple lenders to find the best deals
A smarter way to finance your next car
15+ lenders, 100+ deals
Access to a wide UK lender panel means we're more likely to find the right deal for you.
Soft search only
Getting a quote won't affect your credit score. A hard search only happens if you go ahead.
Tailored expert advice
UK-based advisers guide you at every step — by phone, WhatsApp or online.
Fast & efficient
Instant decisions in minutes and same-day delivery or collection once approved.