Personal Contract Purchase (PCP) is a type of car finance that allows you to drive a new or used car for a set period of time (usually 24-48 months) without having to pay the full amount upfront.
Instead you make monthly payments to pay off some of the capital borrowed and interest:
- Hand the car back to the finance company, as long as you have kept to the contracted mileage and the condition of the car been maintained.
- Trade the car in for another one. This is a popular option for people who like to change their car regularly. The dealer will assess the value of your car and use any equity to put towards your next deposit.