Personal Contract Plans (PCPs)

Many car dealers offer Personal Contract Plans (PCPs) as a way to pay for a car. PCPs can appear very attractive because they usually have low monthly repayments. However, PCPs are very complex compared to other types of car finance and it’s important to understand all the terms and conditions before you sign up.

A PCP is a particular type of finance which is similar to a standard Hire Purchase (HP) agreement. Many of the legal rules that apply to HP also apply to PCPs. However, the major difference is that you pay less of the amount owed during a PCP agreement, meaning you will still owe a considerable amount at the end of a PCP agreement.

Last updated on 23 October 2023

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