PCP is for new and nearly new cars. There are many other names for PCP depending on the manufacturer eg Ford Options, VW Solutions, BMW Select, etc


PCP is suitable if you

  • are buying a new or nearly new car
  • need low repayment amounts
  • plan to replace your car every 2-4 years with new or nearly new cars
  • do not wish to own the vehicle outright
  • plan to continue purchasing cars using finance or expecting a significant future income
  • want protection against unexpectedly severe depreciation

AutoeBid is the efficient route to your next car!

AutoeBid provides all your car finance and insurance needs


Key Features

  • A significant amount of loan is deferred to the end of the loan period. This is known as the Guaranteed Minimum Future Value or GMFV.
  • By deferring a large amount of the loan it means the monthly repayment amounts are much smaller than an equivalent Hire Purchase
  • The car must be returned in good condition. You will need to pay for any damage over and above agreed wear and tear.
  • Need to decide upfront on a mileage limit. If this is exceeded you will be charged.
  • At the end of the loan you have 3 options: you can either pay the deferred amount, return the car to the dealership and walk away, or if the car is worth more than the GMFV you can part ex for a new vehicle or sell privately to repay the debt
  • The other side of the deferred amount is that you are paying interest on a larger balance and therefore your finance costs are more expensive than a Hire Purchase. This is especially relevant if you intend to buy the car at the end of the loan period.
  • At the end of the finance term you will have either nothing or a very small amount to contribute towards another car and therefore likely to continue to need finance in order to keep owning a car.

AutoeBid is the efficient route to your next car!

AutoeBid provides all your car finance and insurance needs



Personal Contract Purchase or PCP

With PCP the loan is secured on your vehicle. Part of the loan is deferred to the end of the term. This deferred balance is called GMFV or Guaranteed Minimum Future Value. As only part of the loan is paid off during the term, the monthly payments are lower.

At the end of the finance agreement, there is the option for the car to be returned to the lender if its value is below the Guaranteed Future Value. Otherwise you can buy the car from your own funds or part exchange the car and repay the outstanding balance.


The Benefits

  • Lower monthly repayments
  • Protection from unexpectedly severe depreciation

The Drawbacks

  • Your maximum annual mileage is set up front, if exceeded you will be charged.
  • PCP is only available to new or nearly new cars.
  • The total cost of borrowing is more expensive than other options as you are only repaying interest over the term of the loan.
  • The loan is secured, if you don’t keep up repayments it can be repossessed.
  • You must return the car in good condition and with servicing and maintenance completed when due. If this is not the case you could be charged.

PCP may be suitable if you:

  • Want lower repayment amounts
  • Plan to replace your car every 2-4 years with new or nearly new cars
  • Do not wish to own the vehicle outright