Find The Best UK Personal PCP Deals
Looking for a personal car pcp deal to suit your individual budget and needs?
We can help you with a comprehensive selection of the best UK personal contract purchase (PCP) deals that are available...
* Reduce the amount of your monthly payments
* Obtain a flexible deposit amount along with flexible payment plans
* Choose your vehicle from your preferred dealer or a UK car discount site
What is a PCP?
A pcp is a "personal contract purchase" plan that is used to finance a car for private use. Unlike a credit purchase or hire purchase agreement a pcp can give you several options at the end of the plan period:-
- Hand the car back to the pcp company where no further finance costs are involved
- Part exchange the car back to a dealer and choose a different car along with a new pcp deal
- Opt to buy the car outright - by way of making a final value payment (also known as a balloon)
What cars can be purchased on pcp deals?
How does a pcp work?
Although there are some variations when it comes to personal contract purchase deals, most follow a similar path. Typically you pick the car that you want (this can be a brand new car or a secondhand car providing it is only a few years old), then by discussing and arranging with a dedicated pcp company or a car dealers finance expert - you obtain a quote for financing the car.
Things to consider are the deposit amount; some cars require a fixed deposit amount, others a deposit that equates to several months payments in advance, and there are also occasionally certain cars that need no deposit at all to be made! One such car that this usually applies to is the popular Fiat 500 city car.
As an example lets take it that you want to buy a new car such as a Ford Fiesta. The PCP could be made up of you paying a deposit amount of say £1000.00 (or you could part-exchange a car worth this to act as the deposit). You would then pay an amount each month to the pcp finance company over a period of time that has been agreed - this could be for approximately 24 months, 30 months, 36 months, or 48 months.
When the period comes to it's end you can hand the car back and walk away, make a further payment and own the car outright, or exchange it at a car dealership and take out a new pcp agreement on another brand new or used car.
PCP Deals with no deposit
As an example lets take it that you want to buy a new car such as a Ford Fiesta. The PCP could be made up of you paying a deposit amount of say £1000.00 (or you could part-exchange a car worth this to act as the deposit). You would then pay an amount each month to the pcp finance company over a period of time that has been agreed - this could be for approximately 24 months, 30 months, 36 months, or 48 months.
When the period comes to it's end you can hand the car back and walk away, make a further payment and own the car outright, or exchange it at a car dealership and take out a new pcp agreement on another brand new or used car.
PCP Deals with no deposit
When looking to buy a new car you will often come across the odd deal or two where a nil deposit is needed on a personal contract purchase plan. Some manufacturers run these "best deals and offers" as an incentive to get new customers into their brand and a particular model of car that they are selling.
This could be a nil deposit offer on say a Citroen DS3, a BMW 1 series, a Ford Fiesta Zetec, a Nissan Juke, or in-fact any other car that they wish to promote and sell for one reason or another. Some times these best pcp offers are for the launch of a new model of car, at other times it could be because a car in their range is not selling as good as they intended.... It could also be that they are offering a nil deposit pcp deal to try and sell more of their brand of car than their close competitors. Citroen and Fiat regularly have some great and best pcp deals running at various times of the year in the UK!
Faq's with best pcp deals
What are the main advantages in choosing pcp over a traditional car hire purchase agreement?
* The advantages are that you can hand the car back at the end of the pcp period and choose a new car on a new pcp agreement - no hassle with part exchanges, or being tied to the ownership of an "old car"
* You can enjoy lower month payments than if you were buying the car on a hp / credit agreement or via using a personal loan
* You can often drive away in a brand new car for the same monthly payment as a used car
* You can also often drive away in a car having paid no money out as a deposit (with manufacturer schemes)
* You can budget what the car payment charges are likely to be over the full timescale of the pcp agreement.
How long does a pcp contract run for?
* Personal contract purchase agreements usually can run for anything from 24 months to 48 months in length.
The amount of time that you can spread the repayments over can vary depending on the make and model of the car that you are choosing, whether it is brand new or used, which car dealer you are getting the car from, and also how much deposit is being put down. The time period can also vary depending on your individual credit rating score - however, in most instances a pcp deal usually lasts from 24 months to 48 months as a rule.
Can you buy the car at the end of the finance term?
* Yes, with all pcp finance deals you can choose to buy the car from the relevant finance company at the end of the agreement period. The price that you pay for the vehicle is what has been agreed as a Guaranteed Minimum Future Value (GMFV). This is also sometimes referred to as the "balloon"
