Car Finance Explained

Personal Contract Purchase (PCP)

What is Personal Contract Purchase (PCP)

Spread the cost of your vehicle with a guaranteed minimum future value

You pay a deposit and the remaining amount borrowed is split into monthly instalments. We guarantee the minimum amount the vehicle is worth at the end of the agreement.

With PCP, you could benefit from lower fixed monthly payments compared to Hire Purchase and Conditional Sale.

Initial Deposit

You put down a deposit of around 10% of the vehicle price and pay the remaining cost of the vehicle over the term of the agreement.

Fixed monthly payments

Monthly repayments are fixed during the agreement and spread equally throughout the term, including interest. The agreement is up to four years (48 months).

Guaranteed minimum future value

We guarantee the minimum the vehicle will be worth at the end of the agreement, based on agreed annual mileage and maintenance of the vehicle (any excess mileage and/or damage may incur additional charges).

Choose to own, return or exchange the vehicle

At the end of the agreement you can pay the ‘option to purchase’ (OTP) and Guaranteed Minimum Future Value (GMFV) fees to become the legal owner of the vehicle, hand it back to us and walk away, or part-exchange it for a new one.

Apply for car finance with our quick & easy process

Get Approved

Get an instant, online decision with minimal information – initial soft search to apply.

Find a Car

Choose from our selection of vehicles.

Sign & Collect

All paperwork is signed online from the comfort of your home – no need to visit the dealership!

Calculate Finance

Use our loan calculator to calculate payments over the life of your loan. Enter your information to see how much your monthly payments could be. You can adjust length of loan, down payment and interest rate to see how those changes raise or lower your payments.

Price *

Interest Rate *


Period (months) *

Down Payment


Monthly Payment


Total Interest


Total Payments


We are trading as a credit broker and not a lender, and are authorised and regulated by the Financial Conduct Authority, firm reference 655146. We can introduce you to a limited number of lenders, while providing details of finance products available. We will not charge you a fee for an introduction, but may receive a commission from the lender. Lender’s commissions may vary. The commission received does not influence the interest rate you will pay. For questions about commission, please speak to us. Priory Edge Cars, Unit 11, Leigh Street Industrial Estate, Attercliffe, Sheffield, S9 2PR.

Representative finance examples are for illustrative purposes only. Finance is subject to status and credit acceptance. Terms and conditions apply. Available to 18s and over & UK residents only. Guarantees and/or indemnities may be required. Excess mileage and damage charges may apply when vehicle returned.

Frequently Asked Questions

You generally have to be over 18 to get a car loan, and lenders will often have their own specific requirements. You can find out more by looking at their website or contacting them directly, by phone, email, or post.

This depends on the lender. Some loan providers will charge you extra fees if you start making higher repayments than have been agreed, but others may allow it. There may be an early repayment penalty charge if you want to clear the loan in full before the end of the term.

Missing repayments could have several negative effects so always speak to your lender as soon as possible if you are experiencing difficulties. The lender should be able to offer options to help you mitigate the problem. A missed debt payment could harm your credit score and result in a County Court Judgement against you. Any assets secured against the loan could eventually be repossessed. Try to avoid missing repayments as it is likely to make borrowing more difficult and more expensive in future.

APR, or your Annual Percentage Rate, is the interest rate at which you pay back money you’ve borrowed. It takes into account the actual interest rate you pay, plus any other fees or charges involved in the deal, to give you a more complete picture of what your loan will cost.

When you see a rate advertised as the representative APR, this means the lender is required to offer this rate to at least 51% of applicants – however it doesn’t mean you’re guaranteed to receive this interest rate yourself.

Yes, you can get finance for a used car. The amount of choice and the terms will depend on the company you use to take out the financing agreement. Usually the value of a used car will be lower than if it were brand new, so you may find you can also secure cheaper monthly payments.  

To apply for a loan you’ll need your address, contact details, details about your incomings, expenditures and employment. You’ll also need to mention how much you want to borrow, and for how long.

When looking to finance your new car consider what is most affordable for your circumstances, not what is necessarily the cheapest. If you can’t afford to pay for your car upfront with cash (which will usually be the cheapest way to buy a car), taking out a personal loan could be a way to spread the cost of the purchase over a number of years to make it more affordable. When deciding what is the best way to finance a car, you’ll need to consider the interest and any charges added to the finance plan you take out, and the size of your monthly repayments. 

It can take a few minutes to a few days to get approved for a car loan, depending on what type of lender it is, the type of loan you’ve applied for and the type of car you’re looking to buy.

If your car is still on finance, you can’t sell it until you’ve paid off the finance in full as you don’t legally own it yet. Once you’ve paid off your car finance in full, you’ll own your car outright so should be able to sell it if you choose to.

Our handy car finance calculator can help you work out how much a car will cost you with different types of car finance – from personal contract purchase plans to hire purchase and car loans. 

We’ll ask you a few questions about your borrowing needs and our calculator will show you how much it’s going to cost so you can see which finance option is most suitable for you. 

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