What is Personal Contract Purchase (PCP)?
PCP is similar to a Hire Purchase agreement as you will usually pay an initial deposit, followed by monthly instalments.
What makes PCP different is that your monthly instalments are only paying off the depreciation of the car, rather than the entire value of the car. This means lower monthly payments for you but you will have to find a large lump sum (or 'balloon payment') at the end of the contract if you want to keep the car. All of these figures will be clear in our car finance calculator.
During the term of the agreement, you would be the 'registered keeper' of the car and be responsible for insuring and maintaining it, but Admiral would remain the legal owner until the agreement has been repaid in full.
At the end of the agreement, you have 2 options:
- Keep the car - Pay the Guaranteed Future Value (GFV) or 'balloon payment' and keep the car.
- Return the car. If the vehicle has exceeded the contracted mileage and or is not in good condition you will incur extra charges.
Features of PCP
- It's flexible. If you want to change your car regularly, then a PCP deal could be for you.
- At the end of the term, you can simply return the car or make the balloon payment to keep the car.
- Your monthly payments, excluding the final 'balloon' payment might be lower than other Car finance deals.
- Hassle-free payment - if you choose a PCP deal, we'll pay the car dealer for you.
Good to know
- A deposit may be needed for this finance option.
- A PCP deal is secured so you won't own the car outright until you pay the 'balloon' payment and the 'option to purchase fee', or choose to settle earlier.
- If you return the car and have exceeded the agreed mileage limit, you will need to pay an excess mileage charge, as outlined in your terms and conditions.
If you're not sure which type of car finance is best for you, read more on our Car Finance Page about the different types of car finance.
Everything you need to apply for a PCP
When you apply online at Admiral, you'll need to fill in:
- Your personal details
- Your financial details like annual income, and monthly outgoings
- Your bank account details
- Details about the car you're buying e.g. registration number, mileage
- Details about the car dealership you're buying the car from
As a basis for qualification, you must be a permanent resident of England, Wales or Scotland, having lived in the UK for at least 3 years, be between the ages of 18 and 75, and with no recent history of bad credit such as County Court Judgements (CCJs), IVA or bankruptcy. The rate offered will depend on the amount you wish to borrow and your individual circumstances. You can apply for any amount between £1,000 and £25,000 for a period between 12 and 60 months.
APR stands for annual percentage rate. This is the total charge for the loan including fees and interest expressed as a percentage. The APR you are offered may differ from the representative example displayed, this is because each loan application is assessed on an individual basis. The maximum APR we offer is 29.9%.
Admiral Loans are administered and arranged by EUI Limited. EUI Limited is registered in England and Wales at Tŷ Admiral, David Street, Cardiff, CF10 2EH (Reg. No. 02686904). EUI Limited is authorised and regulated by the Financial Conduct Authority (Firm reference number: 309378). These details can be confirmed by visiting the Financial Services Register, www.fca.org.uk/register.
Please see our terms and conditions here.
When you submit an application for a loan, we will conduct an application credit search which may affect your credit score, so you may wish to keep applications to a minimum to protect your credit rating.
If you have any queries about the manner in which your data is processed, please write to: Data Protection Officer, EUI Limited, Tŷ Admiral, David Street, Cardiff CF10 2EH.