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Personal Contract Purchase (PCP) Finance

PCP is one of the most popular types of car finance, offering lower monthly payments than the same vehicle on HP finance.

Car with graphics


What is PCP car finance?

Personal Contract Purchase finance (or PCP) is a way to spread the cost of buying a car. 

You pay a deposit then pay back a portion of the car’s list price over the course of a few years, with an optional final ‘balloon payment’. This is a great car finance option if you like changing your car every few years, or you want lower monthly repayments than an equivalent Hire Purchase (HP) finance package.

Why choose PCP finance?

If you like to change your car every few years and can confidently commit to annual mileage limits then PCP finance is a good choice for you. When you reach the end of the deal, you can bring the car back to one of our stores and part-exchange it, using any equity left over to put towards the finance agreement for your next car, or pay an optional final balloon payment and keep the car. 

Most PCP cars are nearly new or brand new, so will most likely still be under warranty during the years you have it meaning you’re more likely to be saved any unexpected repair costs beyond just normal servicing. 

It’s also a more affordable way to buy a car compared to HP finance, as you’re only making payments on a portion of the car’s value, with the rest deferred to the optional final balloon payment if you decide to keep the car. 

Hire Purchase (HP) is another common type of car finance. Read our HP finance guide for more info, or check out the finance options Motorpoint offers across a great range of nearly new cars.

Customer looking at Motorpoint employee


How does PCP car finance work at Motorpoint? 

Choose your car – browse a great choice of used cars at unbeatable prices on our website. 

Agree deposit and estimate annual mileage – personalise your finance quote, based on the amount of deposit you want to put down, the annual mileage you expect to cover, the length of your agreement and the trade in value of your current car 

Apply for PCP car finance – once you’re happy with the terms of your deal you can apply for finance and drive your car home 

Monthly repayments – start making your regular monthly payments for the duration of your PCP agreement, usually between three and five years 

Pay optional balloon payment – choose to either pay an optional final balloon payment to own the car outright, hand the car back and walk away, or part exchange the car using any equity you’ve built up towards finance for your next finance agreement. 

Your PCP questions answered


Car finance guides

There are a handful of ways that you can sell a financed car and end the deal early. Our guide takes you through the options.

Motorpoint sales executive photographs a part-exchange vehicle

You have a few options when your PCP finance agreement ends – we’ll explain each of them here

Volkswagen car key held up in front of blurry key board containing hundreds of other car keys

PCP is one of the most popular types of car finance, offering low monthly payments. See if PCP is right for you and find out what to do when your agreement ends.

Buying A Car Using PCP - What You Need To Know