What is PCP?

PCP stands for Personal Contract Purchase. This is a specific type of Hire Purchase Agreement offered by car dealers as a way to pay for a car. In a PCP contract, you pay a deposit and continue to make regular instalments, usually over 3 years. There is usually a large lump sum payment that has to be paid at the end of the contract.

You do not own the car until the lump sum payment is made. You must stick to certain restrictions on usage and maintenance, such as mileage limits and servicing obligations.