Personal Contract Purchase, often referred to as PCP, is a popular type of car finance that lets you spread the cost of your vehicle by paying fixed monthly repayments over 36 to 48 months to suit your budget.
PCP uses the guaranteed future value (GFV) of the vehicle as a final balloon payment, which makes the monthly repayments lower compared to Hire Purchase agreement. No minimum deposit is required, so you can choose to either finance the vehicle entirely, or put down a deposit to reduce the monthly payments.
You can set your expected annual mileage between 6,000 to 28,000 miles for cars, or between 3,000 to 10,000 for motorcycles.
You may also qualify for additional borrowing to:
This will be added to the total amount borrowed. For more details, ask your dealership.
At the end of your agreement, you have 3 options: retain, return or replace the vehicle.
If you've found your dream car or motorcycle and you're looking to finance it, you'll want to check out what your finance options are. So, how does a Personal Contract Purchase work? Watch our explainer video to fully understand what a PCP agreement is and how it works.
For customers comparing personal contract purchase vs hire purchase, take a look at some of they key benefits of a PCP agreement:
Personal Contract Purchase is a vehicle finance agreement that combines fixed monthly repayments with flexible options at the end of term.
The agreement allows you to make fixed monthly repayments over an agreed period. At the end of the agreement, you have the option to retain, return or replace the vehicle.
You have the right to repay part or all of your agreement early. You must contact us either in writing or over the telephone if you intend to make a repayment. If you repay part of your agreement early, we will ask you how you want us to treat the money. Usually, you can keep the same agreement length and reduce the amount of each remaining payment, but we will tell you about your options.
Yes. You can settle your agreement at any time and there is no penalty charge for doing so. In order to understand how much you will need to pay, log into MyMotoNovo and request a settlement figure.
HP lets you spread the cost of your vehicle, plus any interest and the option to purchase fee at the end, by paying fixed monthly repayments.
Helping you drive your businesses forward, take a look at our MotoNovo Commercial offering suitable for business customers.
Take a look at the fees that may be associated with your agreement.
Nowadays, cars come with engines in a whole range of sizes. Brush up on your engine bay knowledge as we explain engine sizes big and small.
A used car may look pristine on the outside but the odometer could tell a different story. Here, we discuss how many miles on a used car is too much.
Car finance helps you spread the cost of your next vehicle. We explain the types of car finance and the latest information on car finance checks.