What is Personal Contract Purchase (PCP)? Banner Image

What is PCP

PCP plans start with an initial deposit payment. Then, for the fixed term of the agreement, you will pay monthly instalments. The length of the agreement term depends on your deposit and credit rating.

The monthly payments are made against the depreciation of the car, not its entire value so, at the end of your agreement, a final payment must be made if you want to keep the car. This is often referred to as the Guaranteed Future Value (GFV) of the car. You will also be required to estimate your mileage and surcharges may apply if you exceed this estimate.

How does PCP work?

When you have chosen your new vehicle, you will then agree your annual mileage and decide on the agreement term with one of our Business Managers.

We will then determine the Guaranteed Minimum Future Value of the vehicle at the end of the agreement and work out a deposit and monthly amount that works for you.

At the end of your agreement you will then have three options:

Return – Simply return the car the back to us 
Retain – Keep the car by paying the optional final payment
Renew – Trade it in for another new car

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