PCP Car Finance
Personal Contract Purchase (PCP) is an increasingly popular choice for newer or more expensive vehicles. With PCP you have the option of paying a deposit or not. You finance the car over a set period (normally 3 or 4 years) with a set expected annual mileage.
At the term end you have 3 options; hand the car back, part exchange for a different vehicle, or pay off the final balloon payment to own the vehicle.
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.
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.
Between 24 and 48 months.
The way that PCP works is that when you set up the agreement, you estimate your annual mileage for the car. The reason for this is that the finance company wants to predict what the value of the car will be in case you choose to hand it back at the end of the agreed term (normally 36 or 48 months).
If you do more mileage than you predicted, then you will need to make an excess mileage payment which is calculated on a pence per mile rate - normally about 12 pence/mile but can be higher or lower, so make sure you allow for this when estimating your annual mileage.
This only comes into effect if you are looking to give the car back to the finance company at the end of the agreement.
A balloon payment is simply the final payment that needs to be made on a PCP deal if and when you elect to keep the car. It is normally a sizeable amount so some people who want to keep the car at that point look to refinance the outstanding balloon payment amount.
Of course, you don't have to make the final "balloon payment" - provided the car only has fair wear and tear, and is within the mileage allowance, you can elect to just hand the car back - and get another one!
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.
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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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