PCP (personal contact purchase)

How do PCP agreements work?

Firstly you choose the right vehicle for you then you will make three decisions that will affect your monthly repayments

Your deposit – how much money you want to pay upfront

Your repayment period – the length of the contract

Your estimated annual mileage

Once these have been decided your monthly payments can be calculated and GFV (guaranteed future value / final optional payment)

The term you are agreeing to can vary from 24 to 48 months on a personal contract purchase with a final optional payment on the 49th month as explained in the finance agreement (please keep the customer copy for your own records)

HP (hire purchase)

HP or Hire Purchase agreements enable customers to purchase their vehicle, without a getting weighed down up front with the total cost of the car. Customers can break down the cost into a deposit and manageable monthly payments. At the end of the contract, the vehicle belongs to the customer.

The term can vary from 24 months to 60
months and the vehicle will be paid off completely over the term agreed.


If you do wish to come out of your vehicle prior to the end of the term there are options available;

  • a) Once you reach 50% of the total amount payable you can voluntary terminate the agreement and hand the car back to the finance companyb)
  • You are entitled to sell / part exchange the car at any point throughout the term providing the finance settlement amount is covered by the value of the vehicle upon sale.

For example if you sold the car privately for £10,000 however the finance settlement at that time was £11,000 you would be required to make up the difference however on the flip side, if the settlement was £10,000 and the vehicle sold for £11,000 you would keep £1000.

Should you have any further questions please feel free to get in touch with a member of our team.

Finance options