PCP Explained. How Personal Contract Purchase Works and Why It Could Suit You

Personal Contract Purchase, or PCP, has become a popular alternative to traditional loans because it allows you to drive a newer car with lower monthly payments
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. Instead of paying off the entire value of the vehicle over the term, a significant portion—known as the Guaranteed Future Value (GFV)—is deferred until the end of the agreement.

When you sign up for a PCP deal, you choose your deposit, the length of the agreement and the mileage limit that suits your lifestyle. Because the GFV is based on predicted mileage and condition, sticking to the agreed terms helps protect that value. During the agreement you simply pay the fixed monthly instalments, enjoy driving the car and stay on top of routine maintenance for peace of mind.

At the end of the term you have three options:

1. Return the car – hand it back to the finance company and walk away if it’s worth less than the GFV.

2. Keep the car – pay the final balloon payment to own it outright.

3. Trade in – use any positive equity as a deposit on your next vehicle.

PCP is ideal if you like to every few years or want access to high-spec models without a hefty monthly bill. Auto Choice Car Supermarket offers low-rate PCP deals on a huge range of vehicles and supports all credit profiles with a free finance checker, so you can see your eligibility without harming your credit score. Applications take just minutes online and our Blackburn team is on hand to guide you through every step.

Contact Us Today

Drive now and pay monthly with confidence. Call 01254 413026 or visit our Finance Page to get started.