Personal Contract Purchase (PCP)

Similar to a Hire Purchase agreement but with additional flexibility since part of the cost is deferred until the end of the agreement which may give you the benefit of lower monthly payments. The deferred amount is known as the Guaranteed Future Value (GFV) sometimes known as Optional Final Payment.

What happens next? 

At the end of your PCP agreement, you then have a number of options.    

• Option 1 - Part-exchange your vehicle: use any equity above the Guaranteed Minimum Future Value as an initial deposit on your next purchase.   
• Option 2 - Keep your vehicle: simply pay the Guaranteed Minimum Future Value to retain ownership.    
• Option 3 - Refinance the final balloon payment.    
• Option 4 - Return your vehicle and have nothing further to pay, subject to vehicle condition and within the agreed mileage terms. (Subject to terms and conditions).

Features and Benefits 

• Flexible deposit 
• Low fixed monthly payments
• The choice at the end of the agreement 
• No need to worry about depreciation
• Potential lower payments than a standard HP agreement or Conditional Sale