What Is Personal Contract Purchase?

Personal Contract Purchase (PCP) is similar to traditional Hire Purchase (HP) with fixed payments over a fixed term but you can offset a proportion of the vehicles cost to the end of the agreement, which enables you to afford a higher priced or better specification with a lower or similar monthly payment.

Dependant on the term and the annual mileage, the amount that is offset will be guaranteed – this will be the amount that the finance company will agree to buy the vehicle back for at the end of the agreement. Alternatively this amount becomes your final payment if you decide you wish to keep the vehicle or part-exchange it for another.

PCP is a popular choice with many customers as it affords low monthly payments, a guaranteed future value and ensures piece of mind with the ability to have a better vehicle for your original budget.