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PCP Car Finance

Learn more about PCP car finance, so you can decide if it's right for you.
Why choose PCP?
Here's some of the reasons PCP may be right for you
Lower monthly payments
More flash for you cash
Flexible ownership options
Flexible loan terms
Low deposit options
What is PCP finance?

Personal Contract Purchase (PCP) is a flexible finance product that includes an optional final payment at the end of the agreement. By deferring part of the optional finance balance, you’ll benefit from lower monthly payments throughout your contract term, meaning you’ll be able to afford a better spec or newer vehicle for your monthly budget.

Because part of the balance is deferred to the end of the initial agreement term, the contract will stipulate an annual mileage allowance and will make assumptions based on the condition of the vehicle to build what’s known as the “optional final payment” (this is based on what the car is estimated to be worth at the end of the initial agreement).

This payment is completely optional and the key is that you have options at the end of your initial term. You may decide to keep your car and pay the optional final balance in full, you may decide to keep your car and refinance the final balance or you may decide to return the car and change into a newer vehicle. Learn more about PCP finance below, to see if it’s right for you.

Why we love PCP
If having low monthly payments and flexible ownership options sound great to you,
then PCP may be right up your street.
Flexible ownership options
PCP finance is great when it comes to flexibility. Every part of a PCP finance package is flexible including the initial deposit, the monthly payments and the optional final payment.

The monthly payments you make can be adjusted as you increase or decrease the term of the contract and the mileage allowance you opt for. These are both however set from the outset of the finance agreement and cannot be changed after your contract commences.

When your contract comes to an end, you’ll have an optional final payment that’s based on your car’s Guaranteed Minimum Future Value (GMFV). Again, you’ll have flexibility here and can decide to keep the car (whilst paying or financing the final payment) or return the car so you can buy something new.
More flash for your cash
As PCP finance works by deferring part of the finance balance to the optional final payment, you’ll find that your monthly payments will be lower. This will open up higher vehicle specifications and more prestigious marques to you, as these cars tend to have better residual values.

Combined with our below-market priced vehicles, you’ll be able to get more flash for the same amount of cash.

Start your car search with Big Motoring World today.
What is the Guaranteed Minimum Future Value (GMFV)?
The Guaranteed Minimum Future Value (GMFV), also called the “Guaranted Future Value (GFV)” or “Residual Value (RV)” is the value that our finance providers will guarantee your car will be worth at the end of your PCP finance contract, subject to certain conditions. It is influenced mainly by the mileage of the vehicle, but can also be affected by the bodywork condition and upkeep of service schedules. When you reach the end of your finance agreement, you’ll have the option to pay off this value and keep the car, or return the car back to the finance company. Either way, your finance balance will be fully settled. If the car is estimated to be worth less than the GMFV at the end of your agreement, and you have kept within the agreed mileage limits and not incurred damage to the car, then the finance company would need to take this loss, as the value is guaranteed by them.
What are my options at the end of my PCP contract?
When your PCP contract comes to an end, you’ll have 3 options for next steps. 1) You may decide to return the car to avoid paying the optional final payment. 2) You may decide to pay the optional final payment in full. 3) You may decide to finance the balance of the optional final payment and keep the car.
Is PCP right for me?
If you tend to change your car every 2-4 years, then PCP will be a cost-effective way to finance your car purchase. If however, you’d prefer to keep hold of your car, it may be better to consider hire purchase options.
What documents do I need to bring with me to finance a car?
You’ll need to bring a number of documents with you to apply for finance. This includes your driving licence, a passport (as a secondary form of ID), a recent bank statement (issued within the last 3 months), a recent utility bill (issued within the last 3 months) and your bank details (including your name, account number and sort code).
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