Car Dealer Finance

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What is Personal Contract Purchase (PCP)?

Personal Contract Purchase (PCP) is a finance product that allows you the opportunity to buy a new or a used car.

It is similar to a Conditional Sale agreement as you will usually pay an initial deposit, followed by monthly instalments over a term typically between 18 to 48 months.

What makes PCP different to Conditional Sale? (CS) is that your monthly instalments are paying off the depreciation of the car, and not its entire value, over the course of the term. Then, when you get to the end of your agreement, there is a final, balloon payment that must be made if you want to keep the car. The balloon payment is often referred to also as the Guaranteed Future Value (GFV).
What is Conditional Sale (CS)?

Conditional Sale is a way to finance buying a new or used car. You will normally pay an initial deposit and will pay off the entire value of the car in monthly instalments. When all the payments are made, the Conditional Sale agreement ends, and you own the car outright.
What is Hire Purchase (HP)?

One of the oldest forms of car financing, HP is very straightforward. You simply need to drop a deposit and pay fixed monthly instalments over an agreed length of time. Once the final payment is made, the car is yours to keep.?
What is Personal Contract Hire?

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What is Personal Contract Purchase (PCP)?