What is Personal Contract Purchase?

  • No Deposit
  • We help find you the perfect car
  • PCP and HP from 8.9% APR
  • Free car history and dealer quality check
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PCP is the most popular finance agreement for consumers wishing to change their car easily and often.

Similar to an HP agreement, Personal contract purchase consists of paying an initial deposit, followed by monthly payments – although there are deposit-free options available.

PCP differs from HP as the monthly payments only pay for the depreciation of the car, whereas with HP the monthly payment pays towards the ownership of the car.

At the end of the agreement, you can return the car. If you want to own it outright, you’ll need to pay a lump sum.

Representative Example: Borrow £7,000 with £1,000 deposit over 48 months with a representative APR of 17.9%, monthly payment would be £171.83, with a total cost of credit of £2,247.83 and a total amount payable of £8,247.83. CarMoney Limited can introduce you to a limited number of finance providers based on your credit rating and we will receive a commission for such introductions this can either be a % of the amount borrowed or a flat fee. This does not influence the interest rate you’re offered in any way. CarMoney is a broker not a lender.



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How Does PCP Work?

Deposit & Payment

  • This is tailored to your requirements. A larger deposit will mean lower monthly payments, although many lenders offer deposit-free options.

Annual Mileage

  • Tailored to individual requirements.

Guaranteed Minimum Future Value (GMFV)

  • Also known as the balloon payment, this is the expected value of the car at the end of the agreement. This will need to be paid if you want to own the vehicle outright.

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Options at the End of the Agreement

  1. Own the car outright – by paying the balloon payment
  2. End the agreement – by handing the car back to the finance company
  3. Part Exchange the vehicle for another car

Want to know more about what types of finance we offer? Read our Car Finance page and find out why we are the best broker for you!

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Benefits of PCP Agreements

  • Low initial deposit
  • Low monthly payments
  • Flexible options at the end of the agreement
  • A specified Guaranteed Minimum Future Value (GMFV), therefore protecting you from market fluctuations
  • Ability to change car more regularly – every 2 years

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  • If you exceed the anticipated annual mileage there may be an excess mileage charge at the end of the contract
  • The loan is secured against the vehicle. If you miss payments then the vehicle may be repossessed

If you still can’t decide if personal contract purchase is right for you, then contact CarMoney. We’ll discuss it with you so you can make an informed decision.

Frequently Asked Questions

What is PCP Finance?

PCP car finance offers the opportunity to drive a new car without needing an upfront payment. Instead, you make regular monthly payments and a final balloon payment. It is important to carefully consider your options and compare various deals before deciding.

How does PCP Finance work?

When you take out a PCP car finance agreement, you will need to make a deposit, which is typically 10-20% of the value of the car. You will then make fixed monthly payments over the term of the agreement. At the end of the term, you will need to pay the final balloon payment if you want to keep the car.

What are the benefits of PCP Finance?

Lower monthly payments than traditional car loans, the flexibility to choose what you do with the car at the end of the term, no need to worry about the car depreciating in value, are the best benefits of PCP. However, it is important to note that PCP car finance is not without its risks. For example, you could end up owing more money than the car is worth if you choose to keep it at the end of the term. Additionally, if you exceed the agreed mileage allowance, you may be charged extra fees.

What happens if I exceed the mileage allowance on my PCP agreement?

If you exceed the mileage allowance on your PCP agreement, you will typically be charged an excess mileage fee. This fee is charged per mile and is usually around 5-15p per mile. The excess mileage fee is designed to cover the depreciation in value of the car caused by the extra mileage.

How it works
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Future-Proofed Car Ownership

Our PCP finance gives you flexible options to drive the latest models, trade in your car, or own it outright at the end of the term.

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Low Monthly Payments

Get affordable PCP plans with competitive rates to drive your dream car on a budget.

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We make it easy to get approved for car finance with our fast and efficient approval process.

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CarMoney LIMITED is authorised and regulated by the Financial Conduct Authority (FCA) for consumer credit activity and our registration number is 674094. Representative 17.9% APR. Over 18’s only. CarMoney IS A BROKER NOT A LENDER.

REGISTERED ADDRESS: Pioneer House, 2 Renshaw PL, Motherwell, ML1 4UF, Scotland.Company Number: SC467274.

All finance is subject to status and income. Written Quotation on request. CarMoney Limited can introduce you to a limited number of finance providers based on your credit rating and we will receive a commission for such introductions.