Personal Contract Purchase Car Finance
Get Rates You’ll Love, On Terms You’ll Like, For The Car You Want!
- Rates from 7.9%.
- No impact on your credit score
- Buy from any dealer.
Rates from 7.9% APR. Representative APR 11.9%
Representative example: borrowing £7,000 over 4 years with a representative APR of 11.9%, an annual interest rate of 11.9% (Fixed) and a deposit of £0.00 the amount payable would be £183.99 per month, with a total cost of credit of £1,831.68 and a total amount payable of £8,831.68.
Vehicle Price:
£ 7000
Initial Payment (Deposit):
£ 0
To Pay Over:
48 Months
Best Available Rate:
6.9%
Initial Borrowing:
£7000
Total Cost Of Credit:
£1030.36
Total Amount Repayable:
£8030.36
48 Monthly Payments of
£167.30
Rates from 7.9% APR: the exact rate you will be offered will be based on your circumstances, subject to status.
Representative example: borrowing £7,000 over 4 years with a representative APR of 11.9%, an annual interest rate of 11.9% (Fixed) and a deposit of £0.00 the amount payable would be £183.99 per month, with a total cost of credit of £1,831.68 and a total amount payable of £8,831.68.
What is Personal Contract Purchase
Personal Contract Purchase (PCP) finance can be a convenient way to finance a vehicle purchase, as they typically offer lower monthly payments than traditional auto loans.
PCP is an agreement that allows you to place a deposit and make a fixed monthly payment towards the cost of a car. At the end of the agreement you can either hand the car back, use it as a deposit for a new car or pay the optional final payment, which is the guaranteed minimum future value of car, and then own the car outright.
Process of your application for Personal Contract Purchase
Finalising
If you are happy, we will finalise the deal with the lender on your behalf.
Enjoy Your Car!
Collect your car from the dealer and enjoy it for the duration of your contract.
How does Personal Contract Purchase work?
Here’s a quick example:
Let’s say you want to buy a car worth £40,000 and to finance it over 48 months with a total of 10,000 miles per annum. You wish to pay 10% as a deposit - which is £4,000. Your lender estimates the guaranteed minimum final value (GMFV) of the car after 48 months to be £25,000. Your lender then gives you a loan of £36,000 to pay the dealer for the car and asks you to pay them back the difference between the loan and the GMFV which is £11,000 plus interest.
You sign a 48-month contract at 8.9% APR. So, your monthly payments will be £459.
With the interest, the total amount you end up paying back will be £22,000. At the end of the agreement, you choose to pay the £25,000 GMFV and own the car. Your total outlay including the deposit is £51,000.
Comparison of Personal Contract Purchase with other options
| Finance Features: | Hire Purchase (HP) | Personal Contract Purchase (PCP) | Personal Loan |
|---|---|---|---|
| Requires initial deposit | Optional | Optional | |
| Car is yours at the end of the agreement |
|
Optional | |
| Fixed monthly payments |
|
|
|
| Optional balloon (final) payment |
|
|
|
| Avoid excess mileage charge |
|
|
|
| Secured against an asset (e.g. a car) |
|
|
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| Support with vehicle issues |
|
|
|
Pros & Cons of Personal Contract Purchase Finance
You can purchase a new car without the high cost.
You pay a small affordable amount monthly instead of paying a lot of money all at once.
There are many options for what to do with the car at the end.
You can add optional service and maintenance packages.
The future value of the car at the end of the agreement is guaranteed.
It can be a cost effective way of countering depreciation costs.
You don’t own the car until you pay the optional final payment.
Interest rates can be higher on older cars.
Mileage allowances are fixed yearly, and fees are incurred if you go over this.
The future value of the car also depends on wear and tear and maintenance. You may have to pay for any repairs.
Frequently Asked Questions
How old can a car be for PCP?
Can I end my PCP agreement early?
Can I refinance my PCP car?
Should I take out Gap insurance after finalising my PCP deal?
What additional fees are there?
Let's get started?
Getting a Free Quote with Car Finance Market only takes minutes, and will not affect your credit score
Get in touch
Phone:
0208 200 2431
Email:
info@CarFinanceMarket.co.uk
Business Hours:
Monday to Friday 09:00 - 20:30
Saturday 10:00 - 19:00
Sunday 10:00 - 17:00
