Personal Contract Purchase (PCP) loans are a type of financial product used for the purchase of privately owned vehicles. This type of loan is great if you want to change or upgrade your car or motorcycle at the end of the finance term.

Under a PCP agreement, we guarantee the minimum the vehicle will be worth at the end of your agreement based on the agreed annual mileage and maintenance of the vehicle. This value is known as the ‘Guaranteed Minimum Future Value’ and by deferring this amount to the end of the term, you could benefit from lower fixed monthly payments compared to our Hire Purchase (HP) product.

A deposit of around 10% is usually required and the term can be between one and four years. The finance is also secured against the vehicle. Please note, certain features of PCP, such as excess mileage and wear and tear, may have additional costs at the end of the term and agreement.