Personal Contract Purchase (PCP) keeps monthly payments lower by deferring a large chunk of the car's value to the end — known as the optional final payment or balloon payment. At the end of the term you choose what to do: pay the balloon to keep the car, hand it back, or part-exchange for something new. It's the flexible favourite for drivers who like to change cars regularly.
Best for
- Drivers who like to change cars every few years
- People who want lower monthly payments
- Anyone unsure if they want to keep the car
- Buyers who value flexibility at the end of the term
Pros
- Lower monthly payments than HP
- Flexibility to upgrade, return or buy
- Drive newer cars more often
- Guaranteed future value protects you
Things to consider
- Mileage limits apply (extra charges if exceeded)
- You don't own the car unless you pay the balloon
- Condition charges may apply if returned damaged
How pcp finance works
Lower monthly cost
A portion of the value is deferred to the end, keeping payments down.
Choose at the end
Upgrade, return the car, or pay the balloon to keep it.
Drive newer cars
Refresh your car every few years with ease.