Personal Contract Purchase (PCP) Car Finance

If you like to change your car regularly but want low monthly payments to fit your budget, personal contract purchase could be the answer. Unlike a normal hire purchase agreement you won’t be paying off the full value of the car giving you the flexibility to upgrade the vehicle, buy it or hand it back at the end of the term

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you choose if you want to own the car at the end of the agreement

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Lower Set Monthly Payments

perfect for budgeting

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Low Deposit

allowing you to free up cash

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Guaranteed Minimum Future Value

protecting you from market fluctuations

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Change Cars

ability to change your vehicle more often

Personal Contract Purchase (PCP) Explained

Personal Contract Purchase (PCP) Car Finance

Personal Contract Purchase, also known as PCP, is an increasingly popular way to fund the purchase of a prestige car. Best described as the equivalent of a long-term rental, allowing you to use the car until the contract ends before deciding whether to keep it or change it.

If you’re opting out of your company car scheme, PCP is an ideal choice. Your company car allowance can fund your monthly payments, without paying company car tax.

At the beginning of the agreement, your car’s ‘Guaranteed Minimum Future Value’ (GMFV) is calculated, based on agreed mileage. This is then deferred as a final payment made at the end of the agreement, often referred to as a ‘balloon’ payment.

Deferring the GMFV to the end of the agreement in this way means that your regular monthly payments are lower than those on a comparable HP agreement over the same term.

At the end of the agreement PCP offers a number options:

  • Purchase the car, by paying the final balloon payment
  • Hand the car back and walk away
  • Use any equity in the vehicle as a deposit towards your next car
  • Refinance the final balloon payment

Before choosing a PCP, you need to consider the following:

  • You will need to agree up front the mileage you will cover and stay within this
  • Early termination may result in additional costs

Current representative APR

7.95% APR

Oracle Finance is a Credit Broker and not a Lender.

This means that we deal with a wide range of financial institutions to give our customers a greater choice of competitively priced options. For your protection, Oracle Finance is authorised and regulated by the Financial Conduct Authority for the sale of consumer credit. Oracle Finance is a trading name of Oracle Asset Finance Limited.

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