- PCP - Personal Contract Purchase
Personal Contract Purchase (PCP)
Personal Contract Purchase (PCP) can help you to buy a car with lower monthly repayments than a typical hire purchase product as a large proportion of the amount you repay is deferred into an optional final repayment. You will pay more interest on a PCP agreement than a HP agreement for the same loan amount, term and APR as your balance reduces more slowly due to the optional final repayment. You will decide an initial deposit, term and how many miles you'll travel each year. Monthly repayments will then be calculated along with the optional final repayment amount, based on the anticipated value of the vehicle at the end of the agreement. At the end of the agreement, you can part exchange the vehicle (subject to affordability), return the vehicle (return conditions apply) or pay the optional final repayment and own the vehicle.