Personal Contract Purchase (PCP)

PCP finance gives you a flexible, affordable way to purchase a new car, with lower monthly payments and the freedom to choose what happens at the end of the agreement.

  • Quick decisions and finance application turnaround

  • Expertise in many specialist sectors

We believe that all UK businesses have unique needs when it comes to accessing finance.

Flexible PCP Car Finance Solutions

Personal Contract Purchase (PCP) is a financing solution for private individuals looking to buy a car or motorcycle. 

PCP car finance is ideal for drivers who want the option to return the vehicle at the end of a fixed term or purchase it outright at the agreed guaranteed price. This flexibility makes purchasing cars on PCP finance a popular choice for those who like to change vehicles regularly or keep their options open.

We offer competitive PCP car finance deals with repayment terms of up to five years, helping to reduce monthly costs. If you decide you’d like to keep the vehicle at the end of the agreement, we can also help arrange finance for the final balloon payment.

We take pride in finding the right car finance PCP solution for your needs. If an alternative finance option would be more suitable, we’ll always be upfront and guide you through the process.

Contact us today to talk about tailor-made finance solutions for your new vehicle.

FAQs About Personal Contract Purchase (PCP)

PCP is a popular type of car finance in the UK that allows you to drive a car for a fixed period while paying lower monthly repayments than some other finance options. You don’t pay off the full value of the car during the agreement, only its expected depreciation.

When purchasing cars on PCP finance​ you usually pay an initial deposit, followed by fixed monthly payments over an agreed term (this is typically 2–4 years). At the end of the agreement, you have three options:

  • Pay a final optional balloon payment (also called the Guaranteed Minimum Future Value) to own the car
  • Hand the car back with nothing more to pay (subject to mileage and condition)
  • Part-exchange the car and use any equity towards a new PCP deal.

In the UK, common car finance options include:

  • PCP (Personal Contract Purchase)
  • Hire Purchase (HP)
  • Personal loan
  • Leasing (Personal Contract Hire)
    Each option differs in ownership, monthly cost, flexibility, and end-of-term choices.

PCP car finance is popular because it offers lower monthly payments compared to options like Hire Purchase, making newer or higher-spec cars more affordable. It also provides flexibility at the end of the agreement, allowing you to choose whether to buy the car outright, return it, or part-exchange it for a new one. With fixed interest rates and predictable costs, PCP makes budgeting easier, while the option to change cars every few years appeals to drivers who like to upgrade regularly.

Yes, PCP car finance can be ended early in the UK. You can choose to settle the agreement by paying the outstanding balance at any time, or you may be able to use voluntary termination once you’ve paid at least 50% of the total amount payable, including the final balloon payment.

As long as the car is in reasonable condition and within the agreed mileage, this gives drivers a degree of protection and flexibility if their circumstances change.

Other products you may be interested in

We offer a range of business financing solutions to meet the needs of various industries. Backed with decades of banking and finance experience, our team works with thousands of companies throughout the UK. We help them optimise cashflow and achieve their goals through a range of business finance solutions, including:

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Cashflow Finance

Need a cash flow injection to seize that golden opportunity? We have got you covered. Our flexible financing options are crafted to align payments seamlessly with your business cycles, ensuring that you have the liquidity you need precisely when needed.

A ime of an aerial view of new cars stock at factory parking lot.
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Contract Hire

Contract hire is a cost-effective business finance service for companies that require support with vehicle leasing. Offering the use of new cars or commercial vehicles without the headaches of ownership, this business financing option is a great way to manage your fleet without the risks of depreciation.

A young handsome man smiling out of the driver side window of his truck
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Hire Purchase

Hire purchase is popular amongst businesses and individuals. The customer chooses their supplier directly and negotiates the asset’s price and specifications.

Young adult at a desk reviewing and organizing documents, indicating administrative or financial tasks.
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Invoice Finance

Invoice finance is a way for your business to borrow money against the amounts due from customers. This allows you to receive most of the cash from your invoice value as soon as your invoice is raised.

Are you a Supplier looking for finance for your customers?

If you sell any form of equipment, machinery or commercial vehicles, why not offer point of sale finance to your customers? You can make supplier finance arrangements through any one of our group businesses, where local knowledge is backed by national support.