PCP Cars and Finance Deals

Find new or used cars on personal contract purchase and choose the PCP finance plan that suits you.

What is PCP Finance?

Personal Contract Purchase, also known as PCP, is a popular way of financing a vehicle and is based upon a Hire Purchase (HP) agreement.


The main difference is that the vehicle’s value at the end of the agreement is calculated at the start and is then deferred. This is referred to as the Guaranteed Minimum Future Value (GMFV) and is based on various factors including the starting mileage, the user’s projected annual mileage and the age of the car.

How does a Personal Contract Purchase work?

You pay an initial deposit and then the balance in fixed monthly instalments over an agreed term (24-60 months).


At the end of the contract, you can choose to hand the car back with nothing more to pay*, part exchange it and use any equity (the difference between the trade-in value and the GMFV) towards the purchase of your next car, or simply pay off the GMFV and keep the car.

What are the benefits of a PCP car deal?

  • Flexible deposit options at the start

  • Lower monthly payments than Hire Purchase

  • Fixed monthly payments throughout the term of the agreement

  • Three options at the end of your agreement

  • Easy to budget for your next car purchase

What happens at the end of a PCP agreement?

At the end of a PCP agreement the user has three options:

  • Pay the GMFV and keep the car

  • Trade the car in and use any equity towards their next car purchase

  • Hand the car back with nothing more to pay *

*The car must be in good condition and within the agreed mileage. Under a PCP agreement, monthly instalments are based on the amount borrowed minus the GMFV.

What should I consider before choosing a PCP car deal?

  • Charges – a PCP agreement could work out to be more expensive overall compared to a hire purchase agreement for an equivalent vehicle.

  • Condition –If you decide to return the vehicle, make sure it is in good condition as you could be responsible for any repairs if it is not.

  • Mileage –Make sure you estimate your annual mileage with care as there will be charges for additional miles above the amount agreed.

Commonly asked questions

PCP details
Why choose a PCP?

PCP's are great if you want to change your car on a regular cycle and enjoy fixed monthly payments that are lower than a traditional Hire Purchase.


Part of the Niche Automotive Group

T: 01756 699411   


Embsay Mills Business Centre


BD23 6QR.

Privacy Policy

Terms & Conditions

  • LinkedIn
  • Facebook
  • Instagram

Live chat also available below.

Get in touch

Requiring further information or a quotation for a car funding option? Looking for a specific Make or Model of car to be sourced?

We can introduce you to a limited number of lenders and their finance products. We are not an independent financial advisor; we will provide details of products available, but no advice or recommendation will be made. You must decide whether the finance product is right for you. We do not charge you a fee for our services. Whichever lender we introduce you to, we will typically receive commission from them (either a fixed fee or a fixed percentage of the amount you borrow). The commission arrangements we have in place vary, depending on how you are introduced to us and with which lender we are able to place you with. When you are introduced to us by a motor retailer, we may be paid a flat fee, regardless of the interest rate you pay, finance product, length of agreement, or amount of finance. We may also be paid a fixed rate of commission, calculated as a percentage of the amount of finance. We will always introduce you to the most suitable finance lender offering you the most appropriate finance product for your needs, and at the best interest rate possible (which is determined by the finance lender) based on the commission we are paid and by your credit profile. The amount of commission we receive and pay, and your credit profile, will impact the amounts you pay under your credit agreement. In both cases, we will pass a proportion of the commission paid to us to the motor retailer that introduced you to us. We may also be paid, and pay the motor retailer, higher commission depending on the type and age of vehicle or based on the finance product you are provided with. In these cases, commission levels vary based on the levels of work required to be undertaken by us and the motor retailer. Whilst we may receive higher levels of commission based on the finance product you are provided with, this is always based on the level of work required in relation to the particular product and we will not seek to secure finance products that are not suitable for your needs.

We are a credit broker and not a lender. Niche Vehicle Funding is a trading style of Niche Automotive. Our VAT registration number is 847687858, Niche Automotive is authorised and regulated by the Financial Conduct Authority under firm reference number 650172. If you would like to know how we handle complaints, please ask for a copy of our complaints handling procedure, or click here. You can also find information about referring a complaint to the Financial Ombudsman Service (FOS) at