Personal Contract Purchase (PCP) can reduce monthly payments because a larger optional final payment is left until the end. That flexibility also creates important mileage, condition and end-of-term decisions.
How it works
- Agree the vehicle price, deposit, term and annual mileage.
- Make monthly payments covering part of the value plus interest and charges.
- At the end, return the car, pay the optional final payment to keep it, or use any equity towards another vehicle.
- Mileage and condition charges may apply when the car is returned.
What to check before you apply
- The optional final payment if ownership is your goal.
- Annual mileage limits and excess-mileage charges.
- Fair wear and tear standards.
- The total payable if you keep the vehicle.
A realistic note
PCP is not simply a cheap route to ownership. Keeping the car means funding or paying the optional final payment as well as the monthly instalments.
Frequently asked questions
Do I own the car during PCP?
No. The lender owns it unless you make the optional final payment and satisfy the agreement terms.
What if I exceed the mileage?
The lender may charge for each mile above the allowance if the vehicle is returned.
Can I end PCP early?
You can request a settlement figure. Statutory termination rights may also apply in some regulated agreements.
Important: We Do Car Finance is a credit-broking service operated by Sandhurst Associates Limited. We are not a lender. Finance is subject to status, affordability and lender criteria. Acceptance is never guaranteed.