Our PCP car finance services cater to clients looking for flexible and affordable ways to drive high-performance and luxury vehicles. We offer bespoke finance solutions that make it easier to access prestigious cars for personal use or business purposes.
Our services are designed to help you secure the vehicle you want with terms that fit your financial situation.
Our expertise and market knowledge enable us to provide enhanced terms and bespoke finance solutions that help you get behind the wheel of your dream car. Whether you’re considering a new PCP agreement or looking to refinance an existing vehicle, we are here to guide you through the process and secure the best possible terms.
Contact us to discuss your requirements and learn how our tailored PCP car finance services can help you drive the car you’ve always wanted. Call us today to discuss your requirements on 0203 900 4322
Personal Contract Purchase (PCP) is a popular form of vehicle financing that provides a balance between flexibility and affordability. Unlike traditional car loans, where you gradually pay off the entire cost of the vehicle.
PCP divides the cost into three components:
This final payment, often called a "balloon payment," allows you to purchase the car outright at the end of the term if you choose.
PCP financing operates on the principle of paying for the car’s depreciation rather than its full purchase price. Here’s how it breaks down:
End of Term Options:
To qualify for PCP car finance, several factors are taken into account:
While PCP can be an attractive option, there are some potential drawbacks to consider:
PCP and leasing (also known as Personal Contract Hire, or PCH) are similar in that they both involve monthly payments for the use of a car. However, there are key differences:
Choosing the right personal car finance option depends on your preferences and financial situation. Below is a comparison of five common finance methods, rated across several criteria using a scale of 1 (best) to 5 (worst).
Finance Option |
Hire Purchase |
Unsecured Loan |
PCP |
PCH |
Credit Cards |
Overall Cost |
4 |
5 |
3 |
2 |
1 |
Initial Cost (Deposit) |
4 |
1 |
4 |
3 |
1 |
Monthly Cost |
3 |
4 |
1 |
2 |
5 |
End Car Ownership |
Yes |
Yes |
Option |
No |
Yes |
Convenience |
4 |
3 |
2 |
1 |
5 |
Worry-Free |
4 |
3 |
2 |
1 |
5 |
Note: PCH (Personal Contract Hire) in this comparison refers to a new car, while the other options were for a four-year-old used vehicle.
When selecting a finance option, consider your goals: do you prefer owning the car at the end of the term, or is having a new car with minimal hassle more important? Evaluate the balance between saving costs and enjoying convenience to make a well-informed decision.
While PCP is often associated with financing new vehicles, it can also be an option for used cars, particularly those that are relatively new and still hold significant value. When considering PCP for a used vehicle, lenders will assess factors such as the car's current market value, mileage, and overall condition to determine its suitability as collateral.
Additionally, the interest rates for PCP agreements on used cars tend to be higher than for new vehicles, reflecting the increased financial risk for lenders.
Let’s consider an example to illustrate how PCP works. Emma is interested in a used Audi A3 priced at £14,000. She finds a PCP deal over a 36-month term with an APR of 9.5%. The lender sets the Guaranteed Minimum Future Value (GMFV) at £5,500 and requires a 10% deposit (£1,400).
Here’s how the costs break down:
Compared to hire purchase or personal loans, PCP offers Emma lower monthly payments and the flexibility to either keep, return, or upgrade the car at the end of the contract.
PCP is not limited to just cars; it can also be applied to certain vans and commercial vehicles. The principles remain the same, but eligibility will depend on the van's residual value and expected depreciation. Newer vans are more likely to qualify for PCP because their future value can be more accurately predicted.
Whether PCP is the right choice depends on your needs and preferences:
Pros:
Cons:
At Clifton Private Finance, we have dedicated car finance specialists who are here to help you. Working together, we can explore the options that are available for you and help you get the best deals possible - whether for business or personal car finance.
Working with a broker like Clifton Private Finance gives you a huge advantage, able to leverage our expertise which has been developed from many years of dealing with vehicle finance in all its forms. Why spend hours - or even days - trying to find the perfect car finance deal when we have already done the hard work. Contact Clifton and ask to speak to either a personal or business car finance expert and let us start helping right away.
Call us today to discuss your requirements on 0203 900 4322
The GMFV is the estimated value of the car at the end of the agreement. It is used to calculate your monthly payments and the final optional payment.
If the car is worth less than the GMFV, you can return it to the finance company without any financial liability, provided the car meets the agreed condition and mileage terms.
Yes, but there may be fees for early termination. You may also be required to pay the difference between the car's current value and the outstanding finance amount.
Some lenders offer PCP options for those with bad credit, but interest rates will likely be higher, and the terms may be less favourable.
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