PCP Car Finance
Flexible PCP Car Finance to Suit Every Driver
Personal Contract Purchase (PCP) is one of the most popular ways to finance a car in the UK, giving drivers the chance to enjoy lower monthly payments, flexible end-of-term options, and access to newer, more reliable vehicles.
At carloans 365, we help customers find affordable PCP finance through our panel of trusted UK lenders. Whether you’re upgrading your current car, choosing your first vehicle, or looking for a finance option that supports you while you rebuild your credit, our aim is to make everything simple, clear, and manageable.
What Is PCP Car Finance?
PCP (Personal Contract Purchase) is a flexible form of car finance that spreads the cost of driving a vehicle over an agreed term, normally between 24 and 48 months.
Your monthly payments are typically lower than other types of car finance because you only pay for part of the car’s value during the agreement. At the end, you’ll have three choices:
- Buy the car by paying the optional final payment
- Return the car with no further obligation (subject to mileage and fair wear)
- Part-exchange the car and put any equity towards your next vehicle
This makes PCP ideal for drivers who like to keep their monthly costs low and prefer the freedom to change cars more often.
Why Choose PCP Car Finance with carloans 365?
Lower Monthly Payments
PCP spreads a portion of the vehicle’s value over the term, meaning repayments are usually more affordable compared with Hire Purchase.
Flexible End-of-Term Options
You decide what happens next — whether you want to own the car, return it, or upgrade to something new.
Open to a Wide Range of Credit Profiles
We work with lenders who consider many circumstances. Even if your credit isn’t perfect, we aim to match you with a suitable and responsible finance option.
Choose Your Car from Any Reputable UK Dealer
Once you’re approved, you have the freedom to shop with thousands of trusted dealerships across the UK.
Quick, Simple Application Process
Our online form takes only a few minutes to complete, and your initial check is a soft search, meaning it won’t impact your credit score.
How Our PCP Process Works
1. Apply Online
Fill out our short application form. We only run a soft search at this stage, so your credit file remains unaffected.
2. Get Matched to a Lender
We work with a panel of trusted UK lenders to find a financial solution suited to your circumstances.
3. Choose Your Car
Once approved, you’re free to choose any suitable vehicle from a reputable dealer.
4. Sign Your Agreement & Drive Away
The lender pays the dealer directly, and you begin your monthly repayments. No hassle, no complications.
Is PCP the Right Choice for You?
PCP is suitable for a wide variety of drivers, especially if you:
- Want lower monthly payments than HP
- Prefer upgrading to a new car every few years
- Like having flexibility at the end of the finance term
- Want an option that can still work even if your credit file isn’t perfect
- Want the freedom to choose a car from any reputable dealership
If you're comparing PCP with other types of car finance, our team is always here to guide you through the differences.
PCP vs HP – A Quick Comparison
| Feature | PCP | HP |
|---|---|---|
| Monthly Payments | Usually lower | Usually higher |
| Ownership at End | Optional | Automatic once final payment is made |
| Mileage Restrictions | Yes | No |
| Best For | Flexibility & lower payments | Straightforward ownership |
Both options have their benefits, and the best choice depends on your personal budget, driving habits, and long-term plans.
Understanding the Optional Final Payment
At the end of a PCP agreement, you’ll see the term Guaranteed Minimum Future Value (GMFV) or “balloon payment”. This is the amount you’ll need to pay if you want to buy the car outright.
This figure is agreed at the start of your contract and is based on the estimated value of the car at the end of your term. Many customers choose to return or part-exchange the car instead, but having the option to buy provides useful flexibility.
Can PCP Finance Help If You Have Poor Credit?
While PCP finance is widely available, not all lenders accept every credit profile. However, carloans 365 works with a diverse panel of lenders, including those who specialise in helping customers with lower or developing credit scores.
Approval isn’t guaranteed, but you may still be able to get a fair, affordable PCP deal depending on your circumstances. We always aim to match customers with the most suitable option available.
Apply for PCP Car Finance Today
Whether you're looking for lower monthly payments, a newer car, or greater flexibility, PCP could be the ideal finance option. At carloans 365, we make the process clear and straightforward, helping you find a deal that works for your budget and lifestyle.
Apply online in minutes, with no impact on your credit score from our initial checks.
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REP APR: 21.4% We act as a broker, not a lender.
Representative Example:
Borrowing £7,500 at a representative APR of 21.4%, annual interest rate (fixed) 21.36%, 47 monthly payments of £196.75 followed by 1 payment of £206.75, total cost of credit is £4,315, total amount payable is £11,815.
carloans 365 is a trading name of HT Finance Ltd. Company Number 11481948 registered address: carloans 365, Floor 2, Jackson House, Sibson Street, Sale, M33 7RR. HT Finance Ltd is authorised and regulated by the Financial Conduct Authority, under reference No. 821383 All finance is subject to status, terms and conditions apply. We work with a specific panel of lenders to try to obtain you an approval. We receive a commission for introducing you to parties with whom we work with. This commission is a fixed payment or percentage but can vary by partner. This does not impact the rate you are provided, full information on request. We do not charge a fee for our services.
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Frequently Asked
Questions
All of the lenders we work with offer finance options that require no deposit. Deposits may sometimes be requested. If they are, your account manager will let you and explain the reasons why. Should a deposit not be an option we can always look at other car options.
Making an initial enquiry will not leave a hard check on you credit profile. The lender(s) we submit your application to will conduct a ‘soft search’ in order to pre-approve your application. These searches will show on your credit profile but are only visible to you. A ‘hard search’ will only be carried out should you wish to proceed with any quotation provided to show the live credit agreement you have taken out.
Our open and honest approach means that your account manager will offer you the best pre-approval rate we manage to obtain for you from the outset. We will not offer your application to the highest bidder and always have your best interests at heart throughout our process.
You can purchase a car from any dealer we class as ‘reputable’. We will conduct any necessary checks on the dealer to make sure they are up to our standards giving you confidence in the vehicle you’re purchasing.
We are currently able to offer Hire Purchase agreements, most known as HP. Hire Purchase is a loan attached to the vehicle, designed so that you own 100% of your vehicle at the end of your contracted payments (usually subject to a small option to purchase fee). The balance of the loan is paid over the pre-agreed contract length, the most common term for such loans is between 48 & 60 months. We also have other products available such as conditional sale, lease purchase and personal contract purchase. Your dedicated Account Manager will go through all options available to you. (Subject to status)
We work with a panel of lenders who could offer finance for all credit ratings no matter if your credit is bad! Some of which specialise in securing finance for bad credit. These loans can also work as a great way to boost your credit worthiness for when you next apply for finance. Click ‘Get a quote’ and let us work to secure the best finance offer for you.
Of course, once we have found the vehicle you wish to proceed with, we will negotiate a figure for you part-exchange with the dealer you are purchasing your new car from. You can then simply drop your old car off and drive away in your new one.
If your application is straight forward and you have already seen a car you wish to purchase, then you could collect your vehicle the same day (depending on the lender). If you are in a hurry to get in your new car, please let your account manager know and we will do our best to ‘FastTrack’ your application.
Not answered your question? Get in touch on 0161 410 3365!
