What is a Personal Contract Purchase (PCP)?
A PCP allows you to finance a car but at lower monthly repayments than traditional Hire Purchase or Personal Loan agreements. With traditional methods of purchasing a car your payments are based on having to repay the entire cost of the car equally over the period of the agreement. However, with PCP you are able to defer a proportion of the cost of the car as a final Payment which is payable at the end of the agreement. A Guaranteed Future Value (GFV) is set based on the car’s estimated value at the end of the agreement, which will be equal to the Final Payment.
