What is PCP? (Personal Contract Purchase)

Similar to a Hire Purchase Loan, with PCP you pay a deposit and agree on a monthly payment for the car. However, the deposit and the monthly payments tend to be significantly lower than a Hire Purchase Loan.

The monthly payments are less, due to a sting at the tail end of the agreement – this is called, a ‘balloon payment’. However, the balloon payment is optional, and you have a few options at your disposal.

Advantages of PCP

Disadvantages of PCP

Other Car Finance options

Do you have any other questions regarding vehicle finance? We have put together some of our most common questions. Click on the links below.