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A couple getting their keys to their new car on pcp finance

PCP car finance

We work with a number of lenders to find you the best PCP car finance deal. Apply today with no impact on your credit score and get a decision within minutes.

Zuto is a credit broker, not a lender. Our rates start from 10.9% APR. The rate you are offered will depend on your individual circumstances. Representative Example: Borrowing £6,500 over 48 months with a representative APR of 20.3%, the amount payable would be £193 a month, with a total cost of credit of £2,767 and a total amount payable of £9,267.

What is PCP car finance?

Personal Contract Purchase, also known as PCP, is a popular type of car finance which essentially means you loan the car from the finance provider for a set period of time. 

PCP is similar to a hire purchase agreement in a sense of you pay regular monthly repayments over an agreed period.

Most PCP car finance agreements are between 24 and 36 months. However some providers will offer longer.

How PCP car finance works

PCP is a bit like HP car finance. However, instead of the payments being based on the car’s total value, you pay off its depreciation instead. For example, if the car you buy costs £20,000 and it’s expected to be worth £12,000 in three years when your term ends, then your payments will be based on the depreciation of £8,000. The balloon payment (also known as a Guaranteed Minimum Future Value (GMFV) of £12,000 would be due to be paid at the end of the finance term. Interest is added to the total loan amount of £20,000.

When the terms ends, you have three options:

Option 1: Pay the agreed final payment, sometimes referred to as the balloon payment, at which point you’ll own the car.

Option 2: Part-exchange the car, using the money to settle the balloon payment, and any further equity as a deposit towards the a car.

Option 3: Hand the keys back and walk away.

how PCP car finance works

Applying for PCP finance

If you’re interested in PCP finance, with Zuto by applying online today and you could be behind the wheel sooner than you realise. All we need to know is some personal details so we can get an idea of who you are, and we’ll ask you how much you are wanting to borrow. You don’t need to know exact figures at this stage, but you do need to have a rough idea so we can tailor any finance options available. If you don’t know yet, it might be worth having a quick look online for the kind of car you’re interested in. You can always amend this figure later on.

We’ll then use this to communicate with our panel  of different lenders, to see what they can offer you. There’s a chance we might need some more details from you, like proof of your income, but we’ll be in touch if that happens. Once we have some responses, we’ll give you a call and talk you through your options.

If you’re yet to find a car, we’ll even help with that too. Knowing your plans and budget, we’ll search our approved dealers and recommend some vehicles that may be well suited.

To find out more, complete our online application form or get in touch with the team at Zuto today.

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