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PCP Car Finance

Our PCP car finance solutions are flexible, affordable, and designed to meet your current needs, whatever they may look like. For PCP, you will finance the car over a certain time period, normally 3 or 4 years, with a set expected annual mileage. 

Are you someone who likes to change your car on a regular basis? Do you enjoy driving all the latest models? Perhaps you’re looking for smaller monthly payments that are more realistic for your budget…

PCP is by far one of the most popular ways to finance a car. It allows you to spread the cost into manageable installments and offers several options at the end of the contract. With our help, you can buy that model you’ve been eyeing for months, as opposed to settling for something that just about does the job.

Drive your dream car and have financial confidence – it’s a win-win! Even better, you’re free to change your mind and upgrade to the latest version once the loan term is completed. 

With our wide range of car finance solutions, you won’t need to compromise on style or quality to find a car that fits your finances. Plus, with our soft search service, you can have peace of mind knowing that your credit score will be protected during the application process.

Finding a car that aligns with your budget, needs, and preferences is a tall order! Luckily, you’re in the right place. We have an impressive selection of makes and models available to finance, with something to satisfy every type of driver. 

What you can expect from our PCP car finance service:

Friendly team of industry experts

No impact on your credit score

Tailored payment plans

FCA-authorised and approved dealers

Support for all financial situations

Deals for new and used cars

Total transparency

No initial deposit required

Experience that new car feeling time and time again. Apply today.

PCP car finance: Switch things up without sacrificing your savings

Feeling tied down to one vehicle? Nowadays, our driving needs are constantly changing. While you may be looking for a car that is spacious and suited to family life one year, you may be after something that is sleeker in appearance and comes with all the latest technology the next. 

The issue? Buying a new car can be expensive, especially if you’re wanting to purchase a higher-end model. 

The solution? Personal Contract Purchase. 

With our fuss-free finance service, you can enjoy car ownership without being chained to a long-term commitment. 

Simply fill out our quick online application and we’ll take care of the rest.

What is Personal Contract Purchase (PCP) car finance?

Short for Personal Contract Purchase, PCP is a type of car finance that enables you to drive a newer or more expensive vehicle without having to pay for it upfront. Instead, you are required to make monthly payments over a fixed time period. 

With a few extra terms and conditions involved, PCP can be tricky to get your head around. Our process is super simple: apply, find a car, sign on the dotted line, and drive. 

What happens at the end of the agreement?

Once you have successfully completed your agreement term, you will have 3 options:

1. Return the car to the dealership

2. Become the legal owner of the car by making a final balloon payment

3. Part-exchange your car for a different make or model

When it comes to PCP car finance, there are a few things to keep in mind. You will likely be given a mileage limit for the contract period (the maximum number of miles you are allowed to drive). It’s important to stick to this limit, otherwise, you may face additional charges. If you want to return the car at the end of the agreement, you will need to ensure it is in good condition, with limited signs of wear and tear. 

The specific requirements can vary from lender to lender. If you have any questions or queries, it’s always a good idea to consult with your lender ahead of the agreement or feel free to reach out to a member of our team. 

Personal Contract Purchase (PCP)

Use our handy PCP Calculator to estimate your monthly PCP payments & hit Apply to get the best soft search quote from our huge panel of lenders.

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What are the advantages to using PCP?

The main advantage of using PCP to finance your vehicle is that by having a final “balloon payment” you are able to reduce the monthly payment amounts on the car. PCP Finance normally requires a good credit record but once approved, this means that monthly payments are reduced and more affordable or customers can aspire to owning a newer or more expensive vehicle.

What are the minimum and maximum payment periods for PCP?

Between 24 and 48 months.

What happens if I go over my mileage limit?

At the start of your PCP contract, you will be given a mileage limit to abide by. This will contribute to the amount you owe each month, as well as the final balloon payment. If you go over this limit, you will be subject to excess mileage charges. 

Different lenders will have different terms and conditions when it comes to mileage. Some contracts may allow for a specified amount of extra mileage without any fees, while others will charge for each mile beyond the agreed limit. 

Consider your driving habits before entering into the agreement – if you use the car to run all your errands or frequently take long road trips, you may be more likely to exceed your estimated mileage. 

These charges can stack up quickly, so we would always advise you to monitor and track your mileage on a regular basis. If you are worried about going over the limit, you can look into purchasing extra mileage or consider an alternative agreement that better aligns with your lifestyle. 

What is a "balloon payment"?

We love a technical term in the world of car finance, but it can make things a tad confusing! A balloon payment, also referred to as a GMV (Guaranteed Minimum Future Value), is an additional, optional sum of money that you pay at the end of the PCP contract. The exact amount will be established at the start of the agreement and is based on the car’s depreciation value (the decrease in worth over time).

It’s called a ‘balloon’ payment as it is a relatively large sum of money, amounting to more than each monthly instalment. Although having this payment at the end of the contract allows you to enjoy a more affordable finance plan, it’s important to look ahead. If you want to drive away with the car once you’ve completed your loan term, you’ll need to set aside some of your savings. Many people also opt to refinance the outstanding balloon payment amount. 

Budgeting is crucial when entering into any car finance agreement. To get a better idea of your finances, you can use our handy calculator

Of course, the final balloon payment is not compulsory. Provided the car only has fair wear and tear, and is within the mileage allowance, you can elect to hand the car back – and get another one!

Can I get a PCP deal?

This is a question we hear often and ultimately this very much depends on your credit score. PCP car finance companies are more conservative with their approach than HP finance companies. This is because they are effectively taking more risk where they need to balance a good APR rate for customers with the the residual value of the car if you choose to hand it back. The good news is that We Finance Any Car has a very large panel with many PCP lenders on it so we can get those with Excellent and Good credit ratings into a PCP car. Rather unusually, we also have access to Lease vehicles for sub prime customers so if you don’t have great credit, we can still get you into a lease car.

What's the difference between PCP and HP car finance?

Compared to Hire Purchase (HP) car finance, you do not legally own the car until you have completed the final payment at the end of the agreement. This can offer greater flexibility, allowing you to tailor your loan to suit your financial situation and lifestyle. With PCP, the monthly payments are usually lower, as only part of the vehicle’s value will be covered over the loan term. 

Am I eligible for a PCP car finance deal?

Generally speaking, you need to be at least 18 years old and have proof of residency to apply for PCP finance. You will also need to have a healthy credit rating and a stable income. For the lender, this demonstrates that you can responsibly manage the monthly payments and fulfil your end of the agreement, improving your chances of securing a loan. As the applicant, you are less restricted in your choice of car, with access to a broader range of deals and more favourable financing terms. 

Due to the amount of risk involved in having to balance a good APR rate with the residual value of the car, PCP lenders tend to be more conservative with their approach than HP lenders. Simply put, this can make it trickier to pass the application stage if you do not have an excellent or good credit rating. 

We recognise that no financial situation is the same and are dedicated to making car finance as accessible as possible. That’s why we work with a specialist panel of lenders who consider all applications, regardless of the risk level. Whatever your individual circumstance, we go above and beyond to secure you a competitive deal. 

If you’re unsure whether you fit the eligibility requirements, get in touch with our team today

Is PCP right for me?

I’m struggling with a bad credit score and have been rejected by other lenders:


Whether you’ve missed a payment for a previous loan, have dealt with excessive debt, or even experienced bankruptcy, there are several factors that can negatively impact your credit score. This can act as a barrier for future finance applications, presenting you as a potentially high-risk candidate.


At We Finance Any Car, we offer a bad credit car finance service for anyone who is being held back by their credit score.


Rather unusually, we also have access to lease vehicles for customers with lower credit scores or less-than-perfect credit histories. So, even if you aren’t successful in your finance application, we can still get you behind the wheel. 


I’m a low-income earner and am worried about my chances of securing a PCP deal:


When you apply for car finance, the lender will review your debt-to-income ratio. This is effectively the amount of your income that will go towards paying back the loan. Any concerns around your ability to comfortably cover your financial obligations can hinder your chances of approval. 


Don’t panic! We will work with you to find a suitable deal for your situation, whether that’s PCP or an alternative finance option


One thing to bare in mind is that having a lower income is likely to reduce the amount you can borrow and therefore the type of car you are eligible for. This is to help you better manage your budget and prevent you from falling into financial strain. 


I’ve just passed my driving test and looking for my first car:


If you’re a young driver, this will likely be your first time applying for car finance. Without having an established credit history, or being able to show a track record of responsible borrowing, you may face a few more hurdles. 


Demonstrating a reliable source of income can help to improve your chances of success, although you may be subject to higher interest rates. If you have the funds in place, PCP finance could still be the option for you. 


Plus, this type of agreement often comes with maintenance coverage, reducing the financial burden of having to fork out unexpected repair costs. 


Have you considered using a guarantor? This is someone who is willing to take on the responsibility of your loan if you fail to meet the repayments. They will need to have a strong credit score and stable employment. For many first-time buyers, a guarantor can be a great way to strengthen your PCP application and give you access to a broader range of vehicles, helping you to secure a higher quality or more expensive car. 


This works in the same way as any other PCP agreement, with the guarantor’s obligations ending once the contract has been fulfilled. 


I’m self-employed and in desperate need of a mode of transport:


As long as you have a good credit history and can provide documents that verify your income stability, you shouldn’t face too many setbacks with your PCP application. Lenders often prefer you to have been self-employed for a certain period of time, usually around 2 to 3 years, although this isn’t always the case.


With fixed budgeting and flexibility at the end of the agreement, PCP is often the perfect option for self-employed drivers. Plus, having the opportunity to purchase a newer, more reliable, and stylish model can help to enhance your professional image, especially if you are running your own business. 


As always, we will be on hand to help you navigate any bumps in the road. 

I want to purchase a used car - can I still get a PCP deal?

Yes! Although PCP finance is ideal for those looking to buy a new car with all the latest gadgets, it can also be used to purchase a pre-loved vehicle.

You may be on the hunt for a nearly new model or simply after something cheap and cheerful – PCP can be a viable financing solution that satisfies a range of driving needs. There are endless, quality cars currently available on the second-hand market and, as long as it fits the age and mileage requirements, you shouldn’t have too much trouble with securing an agreement.

Some lenders will be hesitant to offer PCP on certain used cars, due to their final value being too low or unpredictable. To give you a rough idea, cars under 5 years old are more likely to qualify for this type of car finance. 

Is purchasing a used car through PCP the best approach for you?

When it comes to deciding on a car, there are many factors to consider before making the choice between a new or used one:

  • Your overall budget – including any running and maintenance costs
  • How it will be used – a car for commuting will have very different requirements than a car for long weekend road trips
  • Any depreciation concerns you may have – vehicles tend to depreciate in value the most if they are new and within the first few years of ownership
  • Whether having the latest features is important to you – although many used cars also offer advanced safety and tech tools, especially in recent model years

The advantage of PCP car finance is that it allows you to drive a shiny new car at an achievable payment plan. One thing to think about is that these incentives will decrease with the age of the car. This means that the cost each month will only be slightly less than if you were to finance the latest version of that model. So, if you’re considering a new car but are concerned about the cost, PCP is a finance option worth exploring. 

If you are still set on buying a second-hand vehicle, we have access to a variety of lenders who specialise in this area and will help you bag the best deal possible. 

Can I get PCP with any car dealer?

At We Finance Any Car, we believe that purchasing a car should be an exciting and hassle-free experience. So, we’ve got rid of the unnecessary faff and created a seamless, 3-step system, matching you with the perfect vehicle in no time at all. 

As PCP is a popular and widely accepted type of car finance, the majority of car dealerships will offer this as an option. Moreover, with our extensive network of FCA-authorised dealers, financing your next car has never been easier. 

Still looking for the right car for you? In our car search portal, we have hundreds of thousands of new and used vehicles to explore. Ranging from spacious SUVs to sleek convertibles and fuel-efficient city cars, there’s truly something to suit every driver. 

Whether you’ve already found the perfect fit, have a particular make or model in mind, or you’re starting from scratch, we can help.

What if I want to sell the car to someone else - can they take over the loan payments?

In a PCP contract, you are not the legal owner of the car until you have made the optional final payment. As it technically belongs to the lender during this period, you can’t simply advertise or sell the car whenever you like. 

We understand that circumstances may change and there can be a variety of reasons for needing to return the car early, whether that’s wanting to switch to a different model or being unable to meet the monthly payments due to financial difficulty. 

With the agreement of the lender, you may be able to sell the car, either to a car buying company or a private buyer. In both instances, the payment will typically be sent to the lender directly. It’s vital that you mention any damage to the vehicle – failure to do so may cause the payout to be considerably reduced. When selling privately, any outstanding fees will be charged to the new owner, so it’s important to have your finances settled beforehand. 


Still unsure?

The good news is that there are other options available. One of which is to part-exchange the car for another model. In this instance, you would use the value of the original vehicle as a deposit towards the next. The professionals refer to this as ‘equity’ – breaking this down, it is essentially the difference between what the car is worth at the end of the loan term and the remaining amount on finance.

Remember, in the early stages of the contract, a vehicle’s value will be much less than the remaining finance balance. As a result, the amount that you still owe the lender will be considerably higher. 

Information overload? Don’t worry – our dedicated team is here to guide you through the entire process, whatever you decide to do. 

What are the minimum and maximum payment periods for PCP?

Payment periods for PCP car finance will generally range between 24 and 48 months. In simple terms, this refers to the length of time you will be required to make regular monthly payments. This will be agreed on at the beginning of your contract and includes everything from the payment amount to interest rates. Ultimately, the ideal payment period will depend on your individual situation. 

We will always be able to advise you on the best route forward, taking into account your budget, financial goals, and preferences. In the meantime, here are a few things to consider:

  • The longer the period, the lower your monthly repayments will be
  • Your car is likely to experience less wear and tear during the shorter payment period
  • The 2-year period is a shorter commitment and popular among those who wish to pay off the loan in a relatively quick timeframe
  • If affordability is one of your main concerns, the 4-year period may be a better option
  • Payment periods may differ depending on the lender’s policies
Am I able to pay off my PCP car finance agreement early?

Yes! You may be keen to have outright ownership and control of the car, or perhaps you are no longer in need of the car and want freedom from any ongoing financial commitments. Whatever your reasoning, being able to pay off your PCP agreement early can be an appealing option, if you have the funds to do so. 

You can end a PCP finance deal at any time by paying the settlement figure. In a nutshell, the total cost of the car is split into smaller chunks over a number of months. The settlement figure is the remaining amount that you owe. 

This figure is based on a variety of factors, including the car’s original purchase price, the amount you have already paid, and any early termination fees.

Once you have made the settlement payment, you will have 2 options that lead to the contract being terminated:

  1. Become the legal owner of the car
  2. Return the car

If you decide to return the car at the end of the contract, the settlement figure may include additional charges for things like excess mileage or damages beyond minor wear and tear. It goes without saying, but keeping your car well looked after throughout the loan term is crucial!

Before going ahead, always ensure you have received the most up-to-date settlement figure. Your lender will be able to talk you through the ins and outs, including any potential fees associated with early termination.

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About Us

If you are looking for car finance, you are in the right place!

We have years of experience in car finance, a very extensive lending panel and a team that is set up to get you the car you want at the best finance rate possible. If you have already found a car and just need the finance – great! If you need help finding a car then we are there for you as well – in fact, we have access to over 300,000 cars.

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