Personal Contract Purchase

What is Personal Contract Purchase?

Personal Contract Purchase, or PCP, is a finance product that lowers your monthly payment by deferring part of the payment to the end of the agreement. Your deposit, monthly payment, annual mileage and final payment can be adjusted to your needs. The agreement can be settled at any time.The deferred payment is calculated using industry data to predict the value of your vehicle at the end of the agreement. Opting for a lower deferred payment can increase equity giving you more to put as a down payment on your next purchase.

Unique to PCP is that the final payment is guaranteed by the finance company, meaning if the value of your vehicle drops faster than anticipated you can simply return it to the finance company. You also have the option of paying off the future value to keep the vehicle or return it as a part exchange.