PCP car finance

Apply for PCP car finance today without impacting your credit score and get an online decision in minutes.

Zuto is a credit broker, not a lender. Our rates start from 9.9% APR. The rate you are offered will depend on your individual circumstances. Representative Example: Borrowing £5,500 over 48 months with a representative APR of 19.8%, the amount payable would be £163 a month, with a total cost of credit of £2,283 and a total amount payable of £7,783.

buying new car handing over key

Personal Contract Purchase car finance – better known as PCP finance – can be a great solution for getting yourself a car when you need it, but in a way that’s financially manageable. In fact, it’s among the most popular finance arrangements for car buyers. So how does it work?

How PCP car finance works

PCP is a bit like a Hire Purchase finance. However, instead of the finance payments being based on the car’s total value, you pay off its depreciation instead. If the car you buy costs £10,000 and it’s expected to be worth £7,000 in three years when your term ends, then your payments will be based on that depreciation of £3,000. The balloon payment (also known as a Guaranteed Minimum Future Value (GMFV) of £7000 would be due to be paid at the end of the finance term.  Interest is added to the total loan amount of £10,000.

When the terms ends, you have three options. You can make what’s known as a balloon payment, which would cover the remaining value of the car and let you take legal ownership. Alternatively, you can give the car back to your finance provider. The final option is to part exchange the vehicle, settling the balloon payment, and use the equity you built up as the deposit on your next car.  

Working out the depreciation for a specific car, and how much monthly payments might be based on a typical APR, isn’t particularly easy. When you apply with us, we’ll get in touch with our panel of lenders and see what they’re able to offer you, based on the details you’ve provided us with. We then crunch the numbers and work out which arrangements are best for your circumstances and will be the cheapest or most financially manageable in the long run.

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 panel of dealers and recommend some vehicles that may be really 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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Getting finance with Zuto is simple

  1. Apply with no impact on your credit score and get a lending decision today!

  2. We compare our panel of lenders, so you get a finance option that suits you.

  3. Search and test drive thousands of cars from our verified dealers.

  4. Complete all the required documents and get the keys to your new car...

Zuto is a credit broker, not a lender. Our rates start from 9.9% APR. The rate you are offered will depend on your individual circumstances. Representative Example: Borrowing £5,500 over 48 months with a representative APR of 19.8%, the amount payable would be £163 a month, with a total cost of credit of £2,283 and a total amount payable of £7,783.