Personal Contract Purchase (PCP) Car Finance
Fund Your Next New or Used Car From Eastbourne Motoring Centre
Benefit From Lower Monthly Payments with Maximum Flexibility
Personal Contract Purchase (PCP) is one of the UK's most popular car finance options, and for good reason. At Eastbourne Motoring Centre, we've helped hundreds of Sussex-based customers drive away in their dream car with affordable monthly payments and the flexibility to adapt to their changing needs.
How Does PCP Car Finance Work?
PCP finance is designed around the simple principle that you only pay for the depreciation of the car during your agreement period, not its entire value. This means significantly lower monthly payments compared to traditional Hire Purchase options.
The PCP Process - What to Expect:
1. Choose Your Car Â
Select any new or used vehicle from the wide range of stock here at EMC, or speak with us about sourcing the exact car you want.
2. Set Your Terms Â
Sit down with us to discuss and agree on your PCP finance options. These include:
- Your deposit amount (typically 10% or more)
- Contract length (usually 18 to 48 months)
- Annual mileage allowance
- Optional final payment (also known as the Guaranteed Future Value)
3. Enjoy Lower Monthly Payments Â
Your monthly PCP payments cover the depreciation of the vehicle plus interest (these are typically between 30% to 50% lower than Hire Purchase payments.
4. Three Options at the End Â
- Return: Hand the car back with nothing more to pay (subject to condition and mileage)
- Retain: Pay the final balloon payment and keep the car
- Renew: Trade in for a new car, using any equity as your deposit
The Benefits of PCP Car Finance Â
- Lower Monthly Payments - Pay only for depreciation, not the full vehicle value
- Guaranteed Future Value - Know exactly what your car will be worthÂ
- Flexibility - Three clear options at the end of your agreementÂ
- Drive Newer Cars - Access to newer models you might not afford to buy outrightÂ
- Protected Against Depreciation - No worries about your car losing more value than expectedÂ
- Upgrade Regularly - Drive a new car every few years
Is PCP Right for You?
PCP works best if you:
- Want to drive a newer or higher-spec car
- Prefer lower monthly payments
- Drive within predictable mileage limits
- Like the flexibility of end-of-term options
- Don't mind not owning the car immediately
Get Your PCP Quote Today
Are you ready to explore PCP finance for your next car? The team at our Eastbourne and Uckfield branches are here to help!Â
The quickest way to get in touch with us is by clicking on the live chat button at the bottom of your screen. Alternatively, you can fill out the finance enquiry form at the foot of this page, or simply give us a call.Â
Our experienced EMC team is here Monday to Saturday* to help you find the ideal car finance solution. Whether you're a first-time buyer or looking to upgrade to a new vehicle, we'll guide you through every step of the Personal Contract Purchase process.
*We’re also open on Sundays by appointment only - get in touch to find out more.Â
EMC Group is proud to serve customers across East and West Sussex, and beyond - including Eastbourne, Uckfield, Hailsham, Lewes, Brighton, Hove, Seaford, and Hastings.
FAQs
- What happens if I exceed my mileage allowance?
If you exceed your agreed mileage, you'll typically pay an excess mileage charge when you return the car. This is usually between 5p to 20p per mile, depending on the vehicle and lender. However, if you decide to keep the car by paying the final payment, excess mileage charges don't apply. We always recommend being realistic about your annual mileage when setting up your agreement.
- Can I modify or customise my PCP car?
Generally, you cannot make permanent modifications to a car on PCP finance, as you don't own it during the agreement period. However, you can add accessories that can be easily removed without damage. If you're planning to keep the car, you can modify it after paying the final payment. Always check with us first before making any change
- What condition must the car be in when I return it?
The car should be returned in good condition, allowing for fair wear and tear. This means normal usage marks are acceptable, but damage beyond reasonable wear may incur charges. We provide clear guidelines on what constitutes fair wear and tear prior to your agreement.
- Can I settle my PCP agreement early?
Yes, you can settle your PCP agreement early by requesting a settlement figure from the finance company. However, you'll need to pay any difference between the car's current value and what you still owe. This could result in negative or positive equity depending on how the car has depreciated.
- What if my car is worth more than the Guaranteed Future Value?
Then it’s good news and means your car is in positive equity! You can use this extra value as a deposit towards your next car. For example, if your Guaranteed Future Value is £8,000 but the car is worth £10,000, you have £2,000 equity to put towards your next vehicle. This is one of the key benefits of PCP finance.
- Do I need gap insurance with PCP?
Gap insurance isn't mandatory, but it can be beneficial when choosing to finance your car through PCP. It covers the difference between what your motor insurer pays out and what you owe on the finance if your car is written off or stolen. This is particularly relevant in the early stages of your agreement when you might owe more than the car's market value.
- Can I get PCP finance with bad credit?
Yes, it is possible. We work with specialist lenders who consider applications from customers with various credit histories. While a poor credit score may affect the terms offered, it doesn't automatically disqualify you. We'll always explore all available options to help you get the car finance you need. Contact our team to discuss your specific circumstances.
- What deposit do I need for PCP?
PCP deposits typically start from around 10% of the car's value, though you can put down more to reduce your monthly payments. Some deals may even offer low or no deposit options, though these usually result in higher monthly payments. We'll help you find the right balance between deposit and monthly payment for your budget.
- How is the Guaranteed Future Value calculated?
The Guaranteed Future Value is calculated using industry data on depreciation rates for your specific vehicle, taking into account factors like make, model, age, mileage, and market trends. This figure is guaranteed at the start of your agreement, protecting you from unexpected depreciation. If the car is worth less than this amount, you're protected. If it's worth more, you benefit from the positive equity.
- What paperwork do I need for a PCP application?
You'll typically need the following documents when you apply for PCP car finance:
- Valid UK driving licence
- Proof of identity (passport or photocard licence)
- Proof of income (recent payslips or bank statements)
- Proof of address (utility bill or bank statement)
- Details of your current address and employment history
- Bank account details for Direct Debit setup
Our team will guide you through exactly what's needed for your application