Personal Contract Purchase (PCP)

A Personal Contract Purchase (also known as PCP) is designed to give you more options. Choosing a Personal Contract Purchase (PCP) to finance your vehicle can lower your monthly payments you'll make on the agreement. It's a particularly popular choice with business drivers who aren't part of a company car scheme.

Many people choose a personal contract purchase agreement as it helps them keep their monthly payments down and it suits their budget. PCP schemes are also very popular with people who have opted out of a company car scheme preferring instead to take a car allowance as part of their job.

Your deposit amount, monthly payments, predicted annual mileage and final payment can all be adjusted. The final amount, known as the Guaranteed Minimum Future Value of the vehicle or as a balloon payment is calculated based on the average industry value of the model at the end of the agreement.

As the monthly amounts on a PCP are usually lower than with other plans, you can easily make the term shorter or go for a higher specification model for the same cost. It's also simple to work out an agreement that suits your driving needs and your budget

The final payment amount is often adjusted downwards to take the depreciation of the vehicle into account. This is done to make sure you have positive equity at the end of the agreement to purchase your next car. In addition, the payment is guaranteed by the finance company, this advantage is unique to a PCP. Should the car depreciate more quickly than you expected, you can return it without any extra charges.

It's possible to pay off a PCP agreement early if you wish. At the end of the term, you have the option of keeping the vehicle or using it in part exchange for another model. Shorter PCP terms give you the flexibility to try out a new car more frequently and agreements can generally last for between 18 and 42 months.

Personal Contract Purchase Benefits

  • You're able to update your car more frequently
  • You're able to afford a nicer car for a lower fixed monthly payment over a shorter term
  • Guaranteed future value eliminates risk of negative equity and protects against depreciation
  • Flexible options at the end of the agreement to fit in with your personal circumstances
  • Ability to settle the agreement early and recieve a rebate on interest charges

How Personal Contract Purchase works

  • Choose a deposit to suit your budget
  • Select the length of your agreement usually between 18 - 42 months
  • Make your monthly payments and at the end of the agreement choose one of three options:
    • Pay the optional final payment
    • Hand the car back to finance company and make no further payments (subject to condition of vehicle)
    • Part exchange the car for a new one

    How To Find Out More

    Please get in touch with Wilsons to select a new vehicle and to learn more about the PCP options available at our dealership. As PCP agreements can only be chosen from dealers, and aren't on price comparison websites, you won't find these offers anywhere else.