It’s quick and easy
Simply tell us a little about yourself and the car you want to buy, and you’ll see all the deals you’re eligible for in one place – along with the monthly repayments and your chances of being accepted.
Find the best deals for car finance
A more flexible way to fund your new wheels
Our partner Motiv works with a wide range of providers, including the big car finance brands, to help you borrow the money you need
Simply tell us a little about yourself and the car you want to buy, and you’ll see all the deals you’re eligible for in one place – along with the monthly repayments and your chances of being accepted.
We’ll ask a few quick questions about your finances to only show you deals that you’re likely to be accepted for
We’ve partnered with Motiv to bring you great car finance deals. Once you’ve found one that suits your needs we’ll put you straight through to the lender.
A personal contract purchase (PCP) agreement is a way of financing a new car without having to buy it outright. You usually pay a deposit and then an agreed number of monthly payments which cover the vehicle’s depreciation.
At the end of the contract you can pay one final ‘balloon’ payment to own the car or return it to the dealer.
With PCP car finance, you can get a great set of wheels right now, without having to pay the full cost up front. Here’s how it works:
With plenty of car finance options available from across the market all you need to do is find the one that best suits you. We’ll send you through to the lender to get your deal started
With PCP, you’ll usually need to pay some of the car’s asking price up front. There might be a minimum deposit of 10%, and a bigger deposit might even mean better rates and deals
You’ll pay back the finance in monthly payments. PCP deals usually last for three to five years – and every payment brings you closer to owning your new car outright
Once your deal is over, you have a choice. You can hand back the keys and walk away, trade it in for a new car on a new PCP, or make one large ‘balloon’ payment to keep the car
PCP can be a more affordable way to finance a car – that’s why more than half of new vehicles financed through a dealership use PCP deals. But the final cost will depend on a range of factors:
Your deposit: The more you can pay upfront, the less you’ll have to borrow and pay interest on
The loan term: Longer finance deals mean lower monthly payments, but you’ll pay more interest overall
The interest rate: The lower your interest rate (APR), the less interest you’ll have to pay. You can get access to better interest rates by boosting your credit score
What you do at the end: To keep your car at the end of a PCP, you’ll need to make a final large ‘balloon’ payment – or you can simply hand back the keys and walk away
Use our car finance calculator to see how much your new car will cost.
36-Month Example | |
|---|---|
Car Price | £15,000 |
Deposit | £1,000 |
Representative APR | 7.9% |
Option to purchase fee | £10 |
GMFV / Final payment* | £6,750 |
Total cost of credit | £2,438.62 |
Total payable | £17,438.62 |
Source: Motiv Finance. Representative 7.9% APR.
* GMFV is guaranteed minimum future value. This is the value of the car at the point you're due to make your final payment.
Lower monthly payments compared to HP or a personal loan
A new or more expensive car model could fall within your budget
Flexibility to buy the car outright or hand it back at the end
You won’t own the car unless you make the large balloon payment
You can usually only have a PCP plan for cars worth £10,000 or more
Finance is secured on the car - it could be repossessed if you miss repayments
The best option is unlikely to be the first deal you come across. By shopping around, you can look for the most affordable PCP plan available
The fun bit is selecting the right make and model for you. Make sure it is practical and meets your needsThe fun bit is selecting the right make and model for you. Make sure it is practical and meets your needs
The deal can be structured in different ways. For example, a larger deposit will reduce your monthly payments
Make sure you’re happy with any mileage restrictions or conditions in place on wear and tear
If you decide PCP isn’t right for you, there are plenty of other ways to get yourself in a new car. Consider some of these:
Borrow a sum of cash for your new car from a lender of your choice
Pay it back in monthly instalments, including interest on the loan
The car is completely yours from the day you sign up
Make a deposit – usually 10% - and then monthly payments.
Once the deal is finished, the car is yours to keep
No final ‘balloon’ payment – but it might cost more month to month
Pay a small deposit, then make fixed monthly payments to lease the vehicle.
Servicing and maintenance is usually included, but you need to stick to an agreed mileage.
At the end of the lease, hand the car back – there’s no option to buy
It’s easy to find the right car finance option for you when you compare with us.
Simply answer a few quick questions about yourself so we can see what you’re eligible for – it won’t affect your credit score
If you’ve already picked a car, you can look up its registration, or just tell us how much you’d like to spend
We compare some of the UK’s leading car finance brands to help bring you the right deal for your needs
No, PCP is a popular way of financing both new and used cars.
Yes, you can usually settle PCP deals early. If you wish to do this you should contact the finance company (ideally in writing) and ask them to tell you the total amount you must pay to clear the loan in full. This amount is called an ‘early settlement figure’ and once you have this to hand you’ll have 28 days from when they received your request to pay the amount off in full.
Assuming your finance deal is a regulated agreement the lender is required by law to include a rebate for a portion of the interest charges that are yet to be incurred (the exact portion depending on how close to the end of the agreement you are when you choose to settle the balance).
Sometimes a PCP deal may not be a regulated agreement, for example if you’ve bought a very expensive car or a classic car. In this case you may not automatically be given the same flexibility for early settlement. You should ensure you understand this before signing up to such an agreement.
If you wish to make any modifications to a car that is currently financed with PCP then you’ll usually need to obtain permission from the finance company. This is because although you may be the registered keeper of the car, the finance company will be the owner until the finance is paid off in full.
If the amount you have borrowed is under £25,000, you can usually cancel within 14 days of the agreement being signed. This period is often called a "cooling off period" and the finance company will provide you with details of the specific process you would need to follow. If you’ve borrowed £25,000 or more, speak to your finance company to understand your options.
If the finance cancellation request is accepted it will need to be repaid in full. This will involve the lender reversing the payment with the car dealership and arranging for the car to be returned to them. However, you should not assume the dealership will automatically be willing to take the car back. If you bought the car on the premises of a car dealership and signed a ‘vehicle order form’ at the location, you may be legally required to pay for the vehicle in full which will require you to have funds available or alternative finance agreed. Also, if you paid an initial cash deposit, this may not be refundable – even if the dealer does take the car back.
Beyond 14 days, your options to cancel the agreement are likely to be more restricted. If your agreement is a ‘regulated agreement’ you’ll usually have a right under UK Law to voluntarily terminate your agreement once you have paid more than 50% of the total amount payable. Check your agreement or speak to your finance company to find out your options.
In nearly all cases, you will need to insure the car you buy with a PCP agreement yourself - just as if you had paid for that car in cash. Some dealerships may offer insurance as part of their overall deal, but you should never assume this is the case.
The finance company will usually require you to take out a “fully comprehensive” insurance policy. If the car is damaged or written off, this provides the finance company assurance that the loan can be repaid.
A key difference between PCP and HP is what happens once you reach the end of the contract period.
With HP you own the car, but with PCP you have the option to make one final ‘balloon’ payment to purchase the vehicle or you can hand it back to the dealership. Our guide on the difference between PCP and HP explains more.
The mileage limit on PCP deals varies from deal to deal. It's often between 6,000 and 30,000 miles per year, and if you go over the limit your finance provider will charge you extra per mile.
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But you might have other questions. Do we provide access to all the companies operating in a given market? Do we have commercial relationships or ownership ties that might make us feature one company above another?
We commit to providing you with clear and informative answers on all points such as this, so we have gathered the relevant information on this page.