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Finance Made Simple
Personal Contract Purchase
Personal Contract Purchase (PCP) Car Finance at HPL Motors
Lower Monthly Payments, Maximum Flexibility - PCP Finance Made Simple
Personal Contract Purchase (PCP) is the UK's most popular car finance option, and for good reason. At HPL Motors, we've helped thousands of customers access quality used cars through PCP finance, offering lower monthly payments and unmatched flexibility at the end of your agreement.
With over 30 years of experience and relationships with leading lenders across the country, we make PCP finance straightforward, whether you're buying your first car or upgrading to something special.
Our promise: Transparent advice, competitive rates, and PCP solutions that put you in control.
Check Your PCP Finance Options in 60 Seconds
Discover what you could borrow with our free soft credit search - there’s no impact on your credit score, and you gain instant results from our panel of trusted lenders.
Get your personalised PCP quote in seconds and browse over 1,000 quality used cars across our four North West showrooms!
What is PCP Car Finance?
Personal Contract Purchase (PCP) is a flexible finance agreement that allows you to drive a quality used car for lower monthly payments than traditional hire purchase solutions. Unlike HP, you're not paying for the entire value of the car - just the depreciation during your agreement.
At the end of your PCP term, you have three flexible options:
- Buy the car outright
- Return it and walk away
- Use any positive equity towards your next vehicle
Why Choose PCP Finance for Your Used Car?
Lower Monthly Payments
Personal Contract Purchase typically provides monthly payments that are between 20% to 40% lower than a hire purchase solution, freeing up your monthly budget for other priorities.
Deposit FlexibilityÂ
Choose your deposit amount to suit your budget, or opt for zero deposit finance if you prefer to keep your savings intact.
Protection Against Depreciation
The Guaranteed Minimum Future Value shields you from market fluctuations - if your car is worth less than the GMFV, simply hand it back.
Is PCP Right for You?
PCP finance works best for drivers who:
- Want lower monthly payments than Hire Purchase (HP)
- Like driving newer, higher-spec vehicles more frequently Â
- Value flexibility at the end of their agreement
- Drive within typical mileage limits (around 6,000 to 15,000 miles annually)
- May want to upgrade to a different car in 2 to 4 years
- Prefer not to worry about depreciation or selling privately
When PCP Might Not Be Ideal
PCP may not suit you if:
- You drive high mileage (over 15,000 miles annually)
- You definitely want to own your car outright
- You prefer to keep cars for many years
- You don't want any mileage restrictions
If the above sounds more like you, Hire Purchase (HP) car finance might be a better fit - speak to our dedicated HPL finance specialists for personalised advice.
Understanding Your PCP Agreement
The Deposit
Your deposit amount directly affects your monthly payments - the larger your deposit, the lower your monthly cost. We can offer the following:
- Standard deposits between 10% to 20% of the car's value
- Zero deposit options (available subject to credit approval)
- Part-exchange service so you can use your current car's value as a deposit
Monthly Payments Explained
Your PCP payments typically cover:
- Depreciation - The difference between the car's current value and its guaranteed future value
- Interest - Applied to the whole amount being financed
- Optional extras - Any additional products you choose (for example, warranty or servicing)
The Optional Final Payment
This is the Guaranteed Minimum Future Value (otherwise known as GMVF), which is the amount you'd pay to own the car outright at the end. Bear in mind you're never obligated to pay this; it's simply there if you choose to buy.
Annual Mileage Limits
Your PCP car finance agreement includes an annual mileage limit (typically between 6,000 to 15,000 miles). This helps determine the car's future value. Excess mileage charges apply if you exceed this limit, which is typically 3p to 15p per mile, depending on the make and model.
PCP Used Car Finance Across Manchester & Lancashire
For over 30 years, HPL Motors has been the trusted choice for PCP used car finance across Manchester and Lancashire. Our four showrooms located across the North West of England put quality used cars and expert PCP advice right on your doorstep.
Are You Ready to Explore PCP Finance?
Discover how PCP could work for you with our 60-second soft credit search, or speak to our finance specialists for personalised guidance.
Local Expertise, Regional Coverage - PCP Finance Where You Need It!
FAQs
- Can I pay off my PCP early?
Yes, most Personal Contract Purchase agreements allow early settlement. This means you can pay off the remaining balance at any time, although be aware that early settlement charges may apply.
- What happens if my car is worth more than the guaranteed future value?
Excellent news! This positive equity can be used as a deposit on your next car, or you can buy the car and sell it privately to keep the difference.
- What if I exceed my mileage limit?
Excess mileage charges typically range from 3p to 15p per mile. We'll help you choose a realistic mileage limit at the start to help you avoid any financial surprises at the end of the agreement.
- Can I modify the car during my PCP agreement?
Minor modifications are usually acceptable, but major changes may affect the car's value. Always check with us first before making any modifications.
- What condition should the car be in when I return it?
The car should be in good condition, considering its age and mileage, with fair wear and tear expected. We'll explain the acceptable standards clearly before you sign on the dotted line.
- Can I get PCP with bad credit?
Yes, we work with specialist lenders who consider applications from customers with various credit backgrounds. Terms may differ, but PCP is often still available.
- What's the difference between PCP and leasing?
With PCP, you have the option to buy the car at the end. With leasing, you must return it - there's no purchase option - essentially, you simply have the car on loan.