PCP Finance

Personal Contract Purchase, known as PCP for short, is almost identical as Lease Purchase, but for one major difference. The Final Value at the end of the agreement is guaranteed, which is calculated at the beginning of the term by the length of term and miles per annum stated. This means at the end of the agreement you have three options:

1- Pay the Final payment and keep the vehicle.

(Once the remaining balance has been paid in full the vehicle is owned outright)

2 - Hand the vehicle back and walk away.

The final value being guaranteed relies on you adhering to a specific amount of mileage that you disclose at the beginning of the agreement. If you go over the specified mileage you will have to cover any fall in the final guaranteed value once the finance company have re-valued the vehicle.

3 - Use the vehicle as a part echange, if there is any equity in your current vehicle it would go towards the purchase of your new one.