Jargon Buster

PCP – Personal Contract Purchase

Personal contract purchase is like leasing a car but with the option to own it at the end of the agreement. This flexibility that has been going down well with consumers for a number of years now.
With a PCP you pay a deposit and monthly instalments just like you would with an ordinary finance loan but these amounts are often smaller than with other methods of finance. The reason for this is that PCP deals require a large final sum or ‘balloon payment’ to be paid before the car becomes yours.