What is Personal Contract Purchase?

At Blade Group, we are committed to helping you find your perfect vehicle at an affordable price. Our flexible finance options allow you to achieve this, and we have a number of packages to suit your requirements, including Personal Contract Purchase (PCP).

How does PCP work?​

PCP allows you to pay a deposit for your vehicle and finance the remaining balance. 

A finance term is set in months, and a prediction of your vehicle's value at the end of the term (the Guaranteed Minimum Future Value) is determined. You will pay off the difference between the vehicle price and the guaranteed future value, plus a fixed APR over the term of the agreement. When your term ends, you have the option to return your vehicle and walk away, trade it in for a new model and another PCP agreement or to pay the remaining amount and keep your car. 

The advantage of this method is that you have options at the end of your term, so you can make a decision based upon your circumstances at the end of the agreement. You also have time to put enough capital aside for the final payment if you're sure that you'd like to own the vehicle at the end of your term. 

PCP differs from Hire Purchase (HP) and Personal Contract Hire (PCH) in a number of ways. With HP, you simply pay off the entire amount borrowed (less the deposit amount) and can choose to own the vehicle outright at the end of your term. With PCH, you lease a vehicle for a contracted period of time and pay a monthly amount. At the end of the term, you simply return the vehicle or extend the contract period, with no outright ownership.​​

Alternatives to Personal Contract Purchase

Take a look at our dedicated Hire Purchase and Personal Contract Hire pages to learn more about finance options with Blade Group, or take a look at our latest offers for more details on the finance packages available on our most popular models.