PCP Car Deals – Find Your Best Offer Today

What is PCP Finance?

A Personal Contract Purchase (PCP) agreement is a flexible car finance option that allows you to drive a new or used vehicle without paying the full price upfront. Instead, you make low monthly payments over an agreed period as part of a structured PCP finance agreement, with multiple options at the end of the contract. This financing method is ideal for those looking for affordable monthly instalments and the ability to switch cars every 2-3 years.

How Does PCP Work?

PCP finance is designed to make vehicle ownership more accessible. The process is straightforward:

1. Choose Your Vehicle – Select a new or used car that fits your budget.
2. Decide Your Deposit & Mileage – Pay an initial cash deposit (if required) and estimate your annual mileage.
3. Fixed Monthly Payments – Make regular monthly repayments covering part of the vehicle’s cost.
4. Guaranteed Future Value (GFV) – At the end of the term, you have three options:
   
   • Return the Car – Hand the car back to the lender with nothing more to pay (subject to mileage & condition).
   • Trade It In – Use any equity in the vehicle as a deposit for a new PCP deal.
   • Buy It Outright – Pay the Optional Final Payment (balloon payment) and own the car outright.

This flexible ownership model makes PCP car finance a preferred choice for many UK drivers.

PCP vs. Other Finance Options

PCP vs Hire Purchase (HP)

• PCP offers lower monthly payments because you only pay for the car’s depreciation.
• HP has higher monthly payments, but once you complete them, you own the car.
• PCP gives you flexible end-of-term options, while HP is ideal for those who want to own their vehicle outright.

PCP vs Car Leasing

• Leasing means you never own the car, whereas PCP provides the option to buy it at the end.
• Leases often include maintenance costs, while PCP does not.
• PCP is better for those who may want to keep the car after the agreement.

PCP vs Bank Loan

• Bank loans give you immediate ownership, with no mileage restrictions.
• PCP deals often come with deposit contributions, such as manufacturer incentives.
• Personal loans may have lower interest rates but require strong credit approval.

PCP Car Finance Example

Let’s say you finance a £20,000 car with PCP:

• Deposit: £2,000
• Loan Amount: £18,000
• Term: 36 months
• Monthly Payment: £250
• Balloon Payment (GFV): £8,000

At the end of the agreement, you can return the car, upgrade to a new PCP deal, or pay the balloon payment to keep it.

PCP Finance Eligibility

Most UK drivers can apply for PCP finance, but eligibility depends on:

• Credit Rating – A good score offers better interest rates, but bad credit PCP deals are available.
• Deposit Contribution – Some deals require a deposit, but zero deposit PCP finance options exist.
• Employment & Income – Proof of stable income improves approval chances.

PCP Car Deals: What to Consider

Before signing a PCP agreement, evaluate the following:

• Annual Mileage Limit – Exceeding the limit incurs extra charges.
• Interest Rate (APR) – A lower rate reduces your total cost.
• Final Payment (Balloon Payment) – Ensure you can afford the residual value if you choose to keep the car.
• Deposit Contributions – Some manufacturers offer incentives that reduce your overall cost.
• Finance Calculator – Use an online PCP finance calculator to estimate monthly payments and total costs.

Pros & Cons of PCP Finance

Pros

Monthly payments are lower than a loan or installment plan.

You don't have to worry about the future value of the car when you sell or resell it.

Several flexible options for what to do with the car are available, including the option to buy it back.

Dealers often add service and maintenance packages, warranties, and insurance.

You have the ability to buy a more expensive car than you could otherwise afford, but with monthly payments that fit your budget.

Cons

You won't own the car.

Interest rates on PCPs are usually higher than on personal loans.

If the projected future value is set very close to the actual value of the car, you will have little money to carry over to another deal.

You'll have to pay additional charges if you exceed the agreed-upon mileage.

The future value is based on keeping the car in good condition. You may have to pay extra for repairs that are not due to normal wear and tear.

Can You Get PCP with Bad Credit?

Yes, you can still secure PCP car finance with poor credit, but:

• Interest rates will be higher.
• A larger deposit may be required.
• Applying through a broker like Carplus can help you find suitable lenders.

Why Choose Carplus for PCP Finance?

Carplus is a trusted PCP car finance broker in the UK, offering:

• Over 100 finance deals tailored to your budget.
• Flexible deposit options, including no-deposit PCP.
• Fast approvals, even for bad credit applicants.
• A vast selection of new and used PCP cars.

Get Your PCP Finance Quote Today!

Find your perfect PCP car finance deal with Carplus. Compare offers, apply online, and drive away in your dream car! 🚗