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We are a credit broker, not a lender.Rates from 9.9% APR: the exact rate you will be offered will be based on your circumstances, subject to status. Representative example: borrowing £7,000 over 5 years with a representative APR of 21.9%, the annual interest rate of 21.9% (Fixed) and a deposit of £0, the amount payable would be £185.33 per month, with a total cost of credit of£4,119.81 and a total amount payable of £11,119.81. We look to find the best rate from our panel of lenders and will offer you the best deal that you're eligible for. We receive a fixed fee commission per finance agreement, or we receive a commission based on a percentage of the total amount of finance taken. This will not affect the interest rate offered or the total amount repayable. Our service is free.
Personal Contract Purchase (PCP) offers one of the easiest ways to finance a new car in the UK. With PCP, you’ll enjoy lower monthly repayments than other finance options, giving you access to a brand-new vehicle more affordably. As a leading PCP broker, we simplify every step of your application, helping you make the most of this flexible finance choice. Even if you have a challenging credit history, we ensure that PCP remains an accessible, budget-friendly way for you to drive the car you want.
How it works?
Apply for your loan
To apply for your car finance to borrow money, decide on the amount you need and the loan term. Our lenders will assess your application and provide feedback promptly.
Apply nowReceive the money
If your application is approved, and you get a car finance quote, the funds will be deposited into your account the same day. Use the money towards your car purchase or other expenses.
Pay it back over time
Repay the loan through manageable monthly payments over 1 to 5 years, covering the borrowed amount and interest. Start your application now to access the finance you need for your next car or personal requirements. Apply today for a swift and straightforward process.
Our Lenders
We work with over 15 lenders offering 100+ HP and PCP deals so that you could have the best offer.
PCP car finance calculator
- 36months
- 42months
- 48months
- 60months
This helps you get a more accurate finance estimate
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Check finance eligibilityWon't affect your credit score
We are a credit broker not a lenderThese estimates are subject to credit checks, and may change if you do apply for finance.
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| Loan amount | £7,500.00 |
|---|---|
| Length of Loan | 60 months |
| Monthly payment | £0 |
| Interest rate | 14.9% APR |
| Optional final payment | £0 |
| Amount of interest | £0 |
| Total payment | £0 |
Rates from 9.9% APR: the exact rate you will be offered will be based on your circumstances, subject to status.Representative example: borrowing £7,000 over 5 years with a representative APR of 21.9%, the annual interest rate of 21.9% (Fixed) and a deposit of £0, the amount payable would be £185.33 per month, with a total cost of credit of£4,119.81 and a total amount payable of £11,119.81. We look to find the best rate from our panel of lenders and will offer you the best deal that you're eligible for. We receive a fixed fee commission per finance agreement, or we receive a commission based on a percentage of the total amount of finance taken. This will not affect the interest rate offered or the total amount repayable. Our service is free.
What is PCP?
PCP is a flexible car finance loan with options at the end. You can choose to buy the car, return it, or trade it for a new one.
With PCP, your loan doesn’t need to cover the car’s full price. Instead, you only borrow the amount the lender expects the car to lose in value while you have it (known as depreciation). This often means lower monthly payments compared to other finance options, but you won’t automatically own the car at the end.
PCP might suit you if you enjoy changing cars regularly, don’t drive long distances, and prefer low monthly payments. You’ll agree to a mileage limit and need to avoid damage to avoid extra charges.
How do PCP finance payments work?
You take a £20,000 car on a 4 year PCP deal with a £2,000 initial deposit and £250 monthly repayments. At the end of the 4 years, a final balloon payment of £10,000 is required to own the car. Alternatively, you can return the car without owing anything more or use its value towards a new PCP on your next car.
The monthly payment you'll make will be determined by:
- The amount of your down payment
- The specific vehicle you have selected
- The price of the car you intend to purchase
- The applicable interest rate
- Your annual mileage
The projected residual value of the car at the conclusion of your agreement.
Comparing PCP with other finance options
PCP works differently from hire purchase (HP) and personal loans. With HP, your payments go directly toward owning the car, with no big payment at the end. A personal loan gives you money upfront to buy the car in full straight away. PCP, on the other hand, offers lower monthly payments and the flexibility to switch cars more often. However, you’ll only own the car if you make a final payment, known as a "balloon payment," at the end of your contract.
| Finance features: | Hire purchase (HP) | Personal contract purchase (PCP) | Personal loan |
|---|---|---|---|
| Requires initial deposit | Optional | Optional |  |
| Car is yours at the end of the agreement |  | Optional | |
| Fixed monthly payments | | | |
| Optional balloon (final) payment | | | |
| Avoid excess mileage charge | | | |
| Secured against an asset (e.g. a car) | | | |
| Support with vehicle issues | | | |
The pros and cons of PCP car finance
Some key advantages of PCP finance include:
- Lower monthly repayments than other finance options
- Fixed interest rates mean payments do not change over the agreement term
- Chance to regularly change into a new car, usually every 2-4 years
- Flexibility at the end of the contract to suit your needs
However, there are also some disadvantages:
- You do not own the car until the final "balloon payment" is made
- Mileage limits usually apply, with excess charges if you exceed agreed "annual mileage"
- Repaying the loan early can be expensive compared to other finance types
- Returning the car at the end means no asset is retained
Can you get PCP car finance?
Yes, you can. When you apply, we aim to get you an approval in principle from our panel of lenders through a simple soft credit check. Some lenders prefer a good credit score, which can boost your chances of securing a PCP loan.
What do you need to apply for PCP car finance
| To apply for car finance you need to | Requirements |
|---|---|
| Your name | Be aged 18-75 years old |
| Date of birth and nationality | Requires initial deposit |
| Your recent address history | Receive a monthly income of £1,000 or above |
| Tour employment status | |
| Your income and expenses | |
Is PCP finance right for me?
PCP car finance is worth considering if:
- You want lower monthly payments to get a more expensive car
- You plan to change cars regularly, usually every 2-4 years
- You drive an average annual mileage that suits contracted mileage limits
- You are comfortable not owning the car until all payments are finished
However, PCP may not suit if:
- You want to own the car with no final payment
- You drive high annual mileages that would exceed limits
- You prefer the flexibility to repay finance early with no penalties
Choosing the best PCP car deal
To find the best PCP deal, compare:
- Interest rates – lower rates mean less overall cost
- Deposit amount – a larger deposit lowers monthly payments but requires more upfront
- Contract length – shorter terms usually mean higher monthly payments
Also consider:
- Mileage allowance – choose one that covers your estimated annual mileage
- Maintenance packages – these cover servicing costs for a monthly fee
Setting these factors up right from the start can help you enjoy affordable, hassle-free motoring.
Can I get PCP car finance with bad credit score?
You can still qualify for PCP finance with a bad credit score or limited credit history. Specialist lenders understand that not everyone has a perfect credit rating and can review your circumstances to match you with suitable PCP deals.
Improving your credit score, like by registering on the electoral roll or offering a guarantor or larger deposit, can boost your chances. Be open with PCP brokers—they have the expertise and resources to help you find a PCP agreement tailored to your needs, even with a bad credit score.
Deposit requirements for PCP
Most PCP deals require an initial deposit, although some zero-deposit options are available.
A larger deposit lowers the amount you borrow, reducing your monthly payments. A zero-deposit PCP, however, means no upfront payment.
Lenders assess each applicant individually to determine the best deposit options. A strong credit history and stable finances can improve your chances of securing a zero-deposit PCP deal.
FAQ's
- Are Personal Contract Purchases worth it?
PCP could be a great option if you prefer low monthly payments, don’t drive long distances, and enjoy changing cars regularly. However, if owning your car outright and avoiding mileage limits is more important to you, PCP may not be the best fit. The final "balloon payment" and extra charges for exceeding mileage limits could make a different finance option more worthwhile for your needs.
- Do you need good credit for PCP?
Good credit allows access to the best PCP finance rates but near prime and bad credit applicants can still get deals. Specialist lenders assess applicants individually so speak to a broker about tailoring PCP to match your credit profile.
- What happens at the end of the PCP agreement?
At the end of your PCP contract, you have three options:
- Pay the outstanding balloon payment to own the car
- Use equity in the car as a deposit for a new PCP deal
- Return the car to the finance company with nothing further to pay (subject to condition and mileage)
- Can I end my PCP finance contract early?
Yes, you can end your PCP contract early, but it’s important to check your contract. Most agreements include an early repayment or cancellation fee, so think about whether ending it early is worth the extra cost.
- What can I do if I am falling behind with PCP payments?
If you’re struggling to keep up with PCP payments, reach out to your lender right away. They may be able to work out an arrangement to help.
Keep in mind that missed or late payments can lead to extra fees, and the lender could repossess the car if payments remain unpaid.
- What else to consider before PCP finance?
Ensure you can afford the monthly repayments comfortably and pick an annual mileage limit that exceeds your needs. Check if fees apply for late payments or exceeding the mileage. Also consider insurance, maintenance and any other running costs.
- Will PCP affect my credit score?
PCP finance shows on your credit file so make sure payments are made in full and on time. Provided the agreement is managed well, PCP can help build your credit score over the duration of the contract.
- Are there additional PCP charges?
Check your agreement for any fees like arrangement, documentation or late payment fees. Excess mileage charges also apply if you exceed pre-agreed annual limits. Maintenance, roadside assistance or insurance cover sold alongside PCP will have separate fees too.
- Can you modify a car on PCP?
To modify a car under a PCP agreement, you’ll typically need permission from the finance company. While you’re the registered keeper, the finance company remains the legal owner until the finance is fully paid off.
- Do I need to insure my car if it’s on a PCP deal?
Yes, you’ll need to insure a car bought with a PCP agreement, just as you would if you owned it outright. Some dealerships may offer insurance as part of the deal, but don’t assume this is included.
Most finance companies require a fully comprehensive insurance policy. This ensures that, if the car is damaged or written off, the finance company has the assurance that the loan will be repaid.
- Is PCP car finance better than HP?
PCP might be a better option if you prefer flexibility, allowing you to "try before you buy" and return the car at the end of your contract. Monthly payments for PCP are often lower since you’re only covering the car’s depreciation, not its full value, and you can choose to skip the final balloon payment if you decide not to keep the car.