Car finance
Compare PCP car finance options and understand deposits, monthly payments, mileage limits and optional final payments.
Lower monthly payments may be possible
Compared with equivalent HP — not always cheaper overall
Final payment required to own
Usually optional if you return the car
Mileage limits may apply
Check excess-mileage charges before you commit
PCP finder
Enter the car price, deposit, term and expected mileage to compare compatible PCP options.
Amount financed
£13,000
Car price minus deposit / part exchange
Ownership
Final payment to own
Compact cue — full detail in product cards
Optional final payment applies
Mileage limits may apply. We do not invent balloon or GFV figures — those come from a product quote for your vehicle. Expected mileage is for context only and does not invent product matches.
Comparing here is not an application. Rates and eligibility are subject to status and may change.
Compare the total cost, not just the monthly payment
A longer term can reduce your monthly payment but increase the total amount you repay. With PCP, also consider the optional final payment and mileage limits.
Set car price, deposit and term, then press Show PCP finance.
How PCP works
PCP spreads the cost of using a car over an agreed term, with a larger optional final payment if you want to keep it. Lower monthly figures do not automatically mean a cheaper overall deal.
You usually pay a deposit or use part-exchange towards the car. The remaining amount is financed under the PCP agreement.
Monthly payments typically cover depreciation plus interest for the agreement term, rather than the full vehicle price — which is why they can look lower than hire purchase.
If you want to keep the car, you normally need to pay a larger final (balloon) payment set out in the agreement. Returning the car may avoid that payment, subject to mileage and condition terms.
The finance provider usually owns the car during the agreement. You normally only own it if you choose to keep it and make the optional final payment, subject to the agreement terms.
End of agreement
Typical choices at the end of a PCP term. None is guaranteed — market value, agreement terms and vehicle condition all matter.
Hand the vehicle back if it meets mileage and condition terms. Excess-mileage or damage charges may apply.
Settle the optional final payment (and any applicable fees) if you want ownership of the car.
Some dealers let you use any available equity towards another vehicle. Equity is not guaranteed — market value and agreement terms matter.
Compare structures
The same car can look cheaper monthly under one structure and cost more overall under another. Use this table to compare ownership, payments and end-of-agreement options.
| Comparison point | PCP | Hire Purchase (HP) | Personal loan |
|---|---|---|---|
| Ownership during the agreement | Usually the finance company | Usually the finance company | You (loan is separate from the car) |
| Deposit | Usually required | Usually required | Often not required |
| Monthly repayments | Often lower than equivalent HP | Typically cover cost + interest | Set by loan APR and term |
| Optional final / balloon payment | Usually yes, if you want to keep the car | Not in the same way as PCP | No |
| Mileage / condition limits | Often apply if you return the car | Usually none from the lender | None from the lender |
| At the end of the agreement | Return (subject to terms), pay the final amount to keep it, or part-exchange where allowed | Ownership generally passes after all required payments and any purchase fee | You already own the vehicle |
The cheapest option depends on APR, deposit, agreement length, fees, any final payment and what you plan to do with the vehicle. This is general information, not personalised advice.
Also compare: All car finance · Hire purchase · Personal loans
Total cost & mileage
PCP can look affordable month to month and still be expensive if mileage, term or the final payment do not match your plans.
Add deposit, monthly repayments, interest, fees and any final payment you expect to make — not just the monthly figure.
A lower monthly payment with a tight mileage limit can cost more if you drive more than expected. Check the excess-mileage rate in the agreement.
A longer term can reduce monthly payments while increasing overall interest. Match the term to how long you plan to keep the car.
Fair-wear rules vary. Budget for possible repair or condition charges if you plan to hand the car back.
Detailed guide
Extra context after you have compared products above.
Personal Contract Purchase (PCP) is a common UK car-finance structure. You usually pay a deposit and monthly repayments that can be lower than an equivalent hire-purchase deal, with an optional final (balloon) payment if you want to keep the car.
Mileage allowances and vehicle-condition rules often apply if you return the car. Excess-mileage and condition charges can add material cost.
A lower monthly PCP payment can look attractive while a large final payment or longer term increases overall cost. Compare PCP with hire purchase and personal loans using APR, deposit, fees and total amount payable.
This is general information, not personalised advice. Always confirm current terms with the lender or broker.
FAQs
Final payments, mileage, ownership and early settlement.
Last reviewed: 9 September 2026
Product data last checked: 9 September 2026
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Written by
Chief Finance Editor
Teresa leads WiT Money’s financial editorial content, helping ensure guides, comparisons and tools are clear, accurate and useful for UK consumers and businesses.
Last updated 9 September 2026
If you spot something that needs correcting or want to contact our editorial team, get in touch.
5 min read
Unsecured personal loan options if you prefer ownership from purchase.
Representative APRs and product details are taken from provider disclosures and may change. Your rate depends on your circumstances. Credit subject to status. Always confirm current terms on the provider’s website. For HP and PCP products, the vehicle may be at risk if you do not keep up repayments. Credit brokers are labelled separately from lenders.