Best PCP car deals - November 2024

PCP is the most popular way to buy a new car thanks to affordable monthly payments and great incentives if you know where and when to look. We round up the best PCP deals around.

If you’re in the market for a new car deal, then PCP is likely to become very familiar to you. That’s because between 80% and 90% of new cars hitting UK roads are bought using some form of Personal Contract Purchase, or PCP for short.

PCP is really simple. You pay a deposit that's affordable, then agree on monthly payments that won’t overstretch your finances, then have the option to buy your car, trade it in for a new PCP deal on a new car, or hand it back once your deal reaches its end.

As with all things, not all car PCP deals are created equal, with some tantalisingly low monthly payments calculated on unrealistically low annual mileage allowances to lure you in. Or other PCP deals having very high interest rates, which can be bumped up if you have a lower credit rating.

However, the popularity of PCP deals means car dealers and car makers often sweeten their deals with things like free services, 0% interest rates and significant deposit contributions, especially if you buy from a franchised dealer and use that firm’s financial services for the loan. If you’re flexible in your approach, then great deals await.

Keeping on top of the latest, greatest PCP deals can be exhausting work, which is where we come in. Here we round up the best PCP car deals in the UK available to new car buyers right now. We search far and wide to hopefully find the right car PCP deals that works for you.

After more deals on new cars? Check out our round-up of all the best new car deals around. 

PCP Deals - A-Z by Car Maker

Here's a list of the PCP deals being offered by carmakers right now. If a deal pops up, we'll feature it here.

PCP car deals

Our round-up of the best car PCP deals highlights the deals we think are the best balance between a low deposit and affordable monthly payments. We update this page every week to make sure we bring you the best deals.

How does a PCP work?

Rather than paying cash for a new car all in one go, a PCP agreement allows you to pay an initial deposit towards the cost of the car, either with cash or a part exchange, or combination of both.

You then take out a loan to be paid back over a set time in the form of monthly payments - usually over two to five years. This breaks the repayment of the loan down into much more manageable chunks, and is effectively you covering the cost of the car’s depreciation.

At the end of the agreement, you have the option to give the car back and walk away, part-exchange the car and start a fresh PCP agreement on a new car, or pay off the outstanding amount.

This latter point is a major appeal of a PCP over a lease deal. Unlike PCH, where there is no ownership option, a PCP always allows you the flexibility of buying the car at the end of the deal. However, you don't take ownership of the car until you've paid the deposit, all monthly payments and the final balloon payment.

What are the negatives of PCP?

Although a PCP offers you the flexibility of owning the car, you only take ownership after paying a deposit, all the monthly payments and the final balloon payment, so careful budgeting is essential if you plan to own the car outright. If so, you might also wish to consider hire purchase, too, as that's geared specifically towards car ownership but with monthly payments.

A low credit score can mean higher interest rates to pay, too, while PCP plans can come with extra costs. Any damage outside of regular wear and tear, and exceeding the agreed mileage limit are chargeable. Likewise, if you decide to end your PCP agreement early, you'll be liable for significant extra outlay.

 

How can I make the monthly cost as low as possible?

The first golden rule is to make sure you don’t get sucked in by a deposit and monthly payment amount that you can only just afford. Think about what might happen if your circumstances change and the impact that this could have on your ability to keep up with your monthly payments. Nicer cars can mean bigger bills for things like insurance and other running costs that you are liable for, too.

As to making the PCP deal itself more affordable, if you can afford a larger deposit, this can trim the monthly payment. Keep an eye out for deals on your chosen car too, as manufacturers regularly offer deposit contributions. The length of your agreement and the number of miles you agree to drive per year make a difference, too. Generally a longer deal with fewer miles makes for the lowest monthly payment. PCP is effectively financing the car’s depreciation, so choose a car that will hold its value well.

How is the final payment to own the car calculated?

The final, optional payment of a PCP agreement is the guaranteed future value (GFV), often called the balloon payment, of the car. This is the car's residual value after the PCP term has reached its end, and will be part of your finance agreement when you sign up for your PCP deal. This GFV amount has to be paid off in order to have ownership of the car transferred from the finance company to you.

The GFV is calculated based on the make and model of car, which impacts how much it will depreciate in the time you’re paying off the loan, and also considers the length of the finance agreement, and how many miles you’re likely to drive.

The GFV amount is agreed when you make the PCP deal, so make sure you understand the figures before signing on the dotted line, and budget accordingly if you plan to buy the car so that you don't miss out if you can't afford the balloon payment.

Who owns a car bought with PCP?

For the duration of the PCP, the car is owned by the finance company that you sign the deal with. So while you've paid your deposit and are paying monthly payments, the car still belongs to the finance company.

At the end of the agreement, the car’s ownership can be transferred to you only if you settle up and pay the final balloon payment (GFV) to keep the car. You don't have any ownership rights until this point.

Often, PCP deals are offered by the financial services companies of major carmakers. For example, if you buy a new Ford Puma on PCP, you’ll be signing an agreement with Ford Credit, so Ford Credit would own the car for the duration of the PCP deal. Pay the deposit, all your monthly payments and then the final balloon payment and it’s yours.

Who pays for repairs on a car financed with PCP?

When you sign a PCP agreement, the specifics of what's covered and what's not when it comes to the car's maintenance or crash damage will be contained within the contract. It's worth making sure exactly what's covered, who is responsible, and the process should you be involved in an accident, before you sign up.

Usually it's the car driver's responsibility to arrange insurance and take car of any maintenance, like annual servicing or replacement of wear and tear items like tyres. Packages are often available that bundle your first two or three services into one payment when you sign up. It's worth checking where the car can be serviced, as some PCP agreements specify a dealer or approved garage only. 

If the car develops a fault, this is generally covered by the manufacturer warranty, while any accident damage would be up to your insurance company to pay the bill to cover. It's worth being honest with your PCP provider should any untoward situation occur, as an unauthorised repair could be charged when you return the car as this will impact the car's value.