What is PCP?

WHAT IS PERSONAL CONTRACT PURCHASE (PCP)?

With Personal Contract Purchase (PCP), you can keep your options open. You choose your deposit and term length, and have three choices at the end of your term.

 

The key difference between PCP and a standard Conditional Sale agreement is that rather than paying the sum of the entire vehicle over the duration of your agreement and owning it at the end, you have the option to give back your vehicle at the end of your term, or even replace it for a different vehicle on a new finance plan.

 

The Retailer will calculate an Optional Final Payment before your contract begins, which is a guaranteed figure and therefore remains fixed throughout your term. This Optional Final Payment is a forecast of the vehicle’s worth at the end of your finance term, which takes into consideration factors like the age of the vehicle at the end of the term, and the estimated mileage that the vehicle would have done when it’s handed back.

 

When calculating your monthly payments, the Optional Final Payment is then deducted from the cost of the vehicle, which means that your monthly payments in a PCP agreement are always likely to be cheaper than in a Conditional Sale agreement.

 

At the end of a PCP finance term, you have three options with Vauxhall.

Go for a change. Part exchange your vehicle (where equity is available) for a different Vauxhall on a new plan
Keep it. Pay the optional final payment to own your vehicle 
Hand it back. If you dont want to keep your vehicle, you're free to return it at the end. 

Comparing Finance Options

The table below highlights the key differences and similarities between the finance products available at your local Vauxhall Retailer.
Personal Contract Purchase (PCP) Conditional Sale Personal Contract Hire
New Cars


Used Cars

X
Upfront Payment Optional Optional
Required
Monthly Payments


Damage Charges ✓*
X

Excess Mileage Charges ✓*
X

Depreciation Risk X
X
Road Tax Included X X
Vehicle Ownership Option to buy**
Owned at the end of the term No option to buy
Maintenance Package X X
✓†

* Damage and excess mileage charges are only payable if the vehicle is handed back

** If you pay the Optional Final Payment, you will take ownership of the car at the end of the contract

† A maintenance package is available for an additional fee