Glossary · Motoring
PCP (Personal Contract Purchase)
Last reviewed:
Definition: A car-finance agreement where you pay a deposit and lower monthly instalments, with a balloon (Guaranteed Future Value) payment to own the car at the end.
At the end you can: hand the car back, pay the balloon to keep it, or part-exchange any equity into a new agreement. PCP is a regulated credit agreement — Section 75 and voluntary termination rights apply.