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Personal Contract Purchase (PCP) car finance

You can use Personal Contract Purchase car finance to spread the cost of a new car across monthly payments, with one final 'balloon payment' at the end of your PCP contract.

What is PCP car finance?

Personal Contract Purchase (PCP) car finance is a way of spreading the cost of your next car.

This type of car finance allows you to make equal monthly payments across an agreed term, with a final ‘balloon payment’ at the end of the term to take ownership of the vehicle.

Unlike other types of car finance, PCP deals consider the cost of the depreciation of your car across the length of your contract. This amount is based on how much your vehicle is predicted to be worth at the end of your contract – also known as the Residual Value (RV) or Guaranteed Minimal Future Value (GMFV).

How does PCP car finance work? 

PCP gives you the freedom to decide whether to pay the lump sum ‘balloon payment’ and purchase the vehicle outright, or hand it back and get something new.

This type of finance is available on many of our cars, depending on the age, mileage and term of the contract.

  1. Find the best used car for your needs – search our website to find high-quality used cars that are available with PCP car finance.

  2. Make a deposit and estimate your mileage – to secure your used car for PCP finance, you’ll need to put down a deposit (usually around 10% of that car’s asking price) and let us know your estimated mileage.

  3. Apply for PCP – you'll need to give us some details like how long you want your PCP deal to last (usually between three to five years), as well as some personal information to see if you’re a good fit for the loan.

  4. Repayments – once you’ve been approved for PCP finance, you’ll start making your monthly repayments.

  5. Optional final payment – when your finance term comes to an end, you can hand back your car or pay a final ‘balloon’ payment to take ownership of the vehicle.

PCP car deals: are they right for me?


  • Fixed monthly payments

  • You can hand the car back at the end of your contract

  • No depreciation worries if you plan to hand back the car

  • You’ll be made aware of the exact amount of the optional balloon payment when you sign your contract

Things to consider

  • You’ll need to pay an initial deposit

  • You’ll usually need fully comprehensive car insurance

  • Excess mileage charges apply if you go over your mileage allowance

  • Large balloon payment if you want to keep the car

Get a PCP finance quote

You can get a PCP deal finance quote by visiting the listing for your ideal car and using our finance calculator.

You’ll just need to tell us your cash deposit amount, your expected annual mileage, term length and estimated credit score.

We also have a car finance eligibility checker that can help you see if you’re a good candidate for PCP.

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