Personal Contract Purchase

What is a Personal Contract Purchase Agreement?

Personal Contract Purchase (PCP) is a car finance arrangement that offers a flexible range of options at the end of your agreement. This type of finance allows you to spread the cost of a purchase. First, you reserve your vehicle with an upfront deposit, then, you’ll pay monthly instalments throughout the agreement.

With Personal Contract Purchase, monthly payments are typically lower than Conditional Sale agreements, because part of the loan is deferred until the end of your agreement. The deferred amount is known as an optional final payment, also known as the Guaranteed Future Value (GFV) or balloon payment. At the end of the agreement, you can pay the optional final payment and choose to own the car. This option gives you plenty of flexibility and time to see if the vehicle is right for you.

Features & benefits of a PCP finance agreement with Stellantis Financial Services 

• Multiple options for the end of your contract.
• Fixed monthly payments tailored to your circumstances.
• Agreed annual mileage limits.
• No need to worry about the future resale value of the car if you’re planning to hand it back, thanks to a Guaranteed Future Value.
• Finance is available on both new and used vehicles.

How does Personal Contract Purchase work?

We offer Personal Contract Purchase on a range of new and used vehicles across our brand network. Before entering into a finance agreement, you’ll speak to your local Retailer about the range of finance options available.

If you decide that PCP is the right option for you, you can begin the purchase process with the Retailer:

1. Agree your fixed monthly payments

You will agree with your chosen Retailer, the deposit amount, annual mileage allowance and the number of monthly payments (minimum and maximum limits applicable). These factors will impact your fixed monthly payments.

2. Pay an initial deposit

If you want to go ahead with a PCP agreement, you’ll pay an initial deposit at the start of the agreement. There is a minimum and maximum deposit requirement for each offer which you will be advised of as you progress through the journey. Then, you’ll pay fixed monthly payments, which allow you to budget effectively. 

3. Decide what to do at the end of your contract

When your PCP agreement comes to an end, you have a choice. You can pay an optional final payment to own the vehicle, end your PCP contract and look at a new car, or you can return your car and end your agreement.

Your options at the end of a Personal Contract Purchase, explained:

At the end of the agreement, you’ll have three options:

1. Part exchange your vehicle

You may be able to part exchange your current car or van for a new vehicle. Subject to credit checks, you could be eligible to start another PCP agreement or choose another type of car finance.

2. Keep your car

If you decide to keep your vehicle, you’ll need to make the optional final payment in one lump sum or refinance the outstanding balance to own the vehicle outright. 

If you prefer not to pay for your optional final payment in full, you may be able to refinance the outstanding balance. You’ll then be able to own the car outright after completing your agreed payment instalments. Find out how to start the refinance process through our helpful FAQ. 

3. Return your vehicle

If you choose to return your vehicle at the end of your agreement, your PCP agreement will end there, providing it‘s still in good condition, according to fair wear and tear guidelines and doesn’t exceed the agreed mileage.

You may need to make an additional payment if your car has excess mileage or damage. These factors will impact the value of your vehicle; meaning it could be worth less than the GFV. To avoid damage charges all repairs should be made prior to the return of your vehicle. If you think you’ll exceed your mileage, please let us know in advance through your online account or using online chat so we can update your agreement and let you know of any relevant changes. 

If you’d like to return your vehicle at the end of your agreement, you’ll need to notify us using your online account.

Find out more about what happens at the end of your agreement, with our helpful end of contract summary.

Personal Contract Purchase for Business 

We’re pleased to offer Personal Contract Purchase on cars for business users. To find out more, please contact your local Retailer. 

We also support business customers looking to finance a new van from any of our manufacturers. For these customers, we are pleased to offer Business Contract Purchase (BCP) a product specifically designed for van users. 

Decide whether Personal Contract Purchase is right for you

Our PCP product can offer flexibility which may suit your requirements. PCP is an ideal route if you’re unsure what you might want to do with your vehicle at the end of the agreement term. This video walks through the key features of PCP, including lower monthly payments, mileage agreements, and your options at the end of the term. It’s a helpful overview if you’re exploring your finance options or want a clearer picture before deciding.