When looking to finance a car, one of the most popular options is a Personal Contract Purchase (PCP) agreement. This allows you to drive the car of your choice at a fixed monthly rate, and offers the flexibility to change your vehicle more frequently. 

PCP is a type of car finance that is determined by the potential depreciation of the car you choose. Monthly costs will be based on the annual mileage limit and the agreement term over which you decide to drive the car. The more miles you drive each year, the higher your monthly payments will be because more miles on the clock means the car will be worth less at the end of the agreement.&nbsp; &nbsp; &nbsp;

However, the higher your deposit, the lower your monthly payments will be.&nbsp;Choosing a longer term will mean that your monthly repayments are lower, however, as the finance is spread out for longer, you’ll be paying a higher amount of interest overall.

When your PCP agreement ends, you'll have three options: make the final balloon payment if you want to keep the car, part-exchange the car for another, or hand the car back to us. Until then, the vehicle belongs to the finance company, and you essentially have a long-term rental until the end of your contract.

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Personal Contract Purchase (PCP)