What is personal Contract Purchase (PCP)?

Using a PCP plan you will make an initial payment, followed by a series of monthly payments & a final optional payment.

A PCP plan will enable you to purchase a new vehicle with lower monthly repayments by deferring a large amount of the total cost of the vehicle to the end of the contract - Known as the GFV or optional final payment. The GFV is set by the finance company & is based on the vehicle and the annual mileage.

How are the monthly payments calculated?

The GFV plus your deposit is subtracted from the cash price & the monthly payments are based on the balance (plus interest on the balance and the GFV). At the end of the agreement you will have a choice of making a final payment or return the car to the finance company.

What do I do at the end of the contract?

  1. Return the vehicle to the finance company. As long as you have not exceeded the agreed mileage, you will have nothing more to pay.
  2. Keep the vehicle by paying off or refinance the outstanding payment.
  3. Trade-in your car for a new car.
  4. Sell the vehicle privately and keep any profit over and above the GFV.

Want to lower your monthly payment?

  • Consider financing the car over a longer contract period.
  • Put a higher deposit down.
  • Calculate your annual mileage accurately. If you only do 5000 miles per year but have left your annual mileage figure at 10000 miles, your payment will be lower and you will be paying more unnecessarily.

For more information or a personalised quote on any used car then please feel free to contact us today.