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What is Personal Contract Purchase?

Personal Contract Purchase is a Suzuki Finance that can help you buy your dream car with lower monthly repayments than a Hire Purchase product. This is because a large proportion of the amount you repay is deferred into an optional final repayment.

The main difference with Personal Contract Purchase, is the option to choose what you do at the end of the agreement. You can part exchange the vehicle, return the vehicle (return conditions apply), or pay the optional final repayment and own the vehicle.

Still unsure whether this is the right finance deal for you? Here’s how PCP works.

How does Personal Contract Purchase work?

You choose your deposit at the beginning of the agreement, and then pay equal monthly repayments with a fixed interest rate, over your chosen period. At the end of the agreement you choose one of the following 3 options:

  1. Part Exchange: subject to paying your agreement in full you can part exchange the vehicle at the end of the term or any time during the agreement. New credit agreements are subject to status.
  2. Return: You have the option to return the vehicle at the end of your agreement. To avoid incurring charges, the vehicle needs to be in good condition and within the permitted maximum mileage - find out more in our good condition guide
  3. Own: Own the vehicle outright by paying the optional final repayment. This will include a £10 purchase fee.

You will also decide how many miles you’re likely to travel each year (up to 24,000 miles), this will affect your monthly repayments and the optional final repayment amount. Make sure you select a realistic mileage allowance, otherwise excess mileage charges may be incurred if you decide to return your vehicle above the agreed contractual mileage.

Our dealers will be able to talk you through the personal contract purchase options available to you, and will be able to answer any questions you might have.

What is Guaranteed Minimum Future Value?

A car’s Guaranteed Minimum Future Value (GMFV) is equivalent to the optional final repayment and is based on the estimated value of the vehicle at the end of the agreement. The value assumes that when returned the vehicle is within the set maximum agreed mileage and good condition.

The GMFV protects you against any unexpected decrease in the value of the vehicle. This means Suzuki Finance takes on the risk of depreciation above the level of the GMFV, and you can hand the vehicle back with nothing to further to pay at the end of the agreement.

Deciding whether Personal Contract Purchase is the right car finance deal for you

A Personal Contract Purchase agreement is ideal if you’d like to keep your options open as you won’t be paying the full value of the car (unless you decide to buy it at the end).

Other benefits of Personal Contract Purchase include:

  • Flexible deposit options
  • Fixed interest rate over your chosen period (2-4 years)
  • Fixed monthly repayments to suit your budget
  • Set your annual mileage up to 24,000 miles.
  • Borrow any amount from £3,000 for new vehicles and from £2,000 on used.

Personal Contract Purchase considerations

Before you decide whether a Personal Contract Purchase agreement is right for you, it’s worth bearing in mind that:

  • You will pay more interest on a PCP agreement than a like for like HP agreement (same loan amount, term and APR).
  • If you choose to part exchange your vehicle at the end of the agreement it could be worth less than the optional final repayment leaving you with a shortfall to pay before starting a new agreement.
  • You won’t own the car until you have made all the repayments, including the optional final repayment plus any interest.
  • Excess mileage charges may be incurred if you exceed your agreed mileage and return the vehicle to us
  • Age of vehicle must be no more than 7 years old at the end of the agreement
A breakdown

of our products

  Hire Purchase Personal Contract Purchase (PCP) Personal Contract Hire
Deposit Required Yes. Flexible. 0% may be available.  Yes. Flexible. 0% may be available.  Yes. 1 - 12 months initial rental.

Length of Agreement

From 1 -5 years From 2 - 4 years From 2 - 5 years
Fixed Payments Yes Yes Yes
Final lump sum repayment at agreement end N/A Yes N/A
Maximum permitted age of car at agreement end Typically 14 years Typically 7 years Typically 5 years
Ownership at agreement end  Yes Yes. If you pay the final lump sum payment. No ownership option available. You must arrange to return the vehicle.
Goods return option N/A Yes. Return conditions apply.  No ownership option available. You must arrange to return the vehicle.
Excess mileage charges  N/A Yes. If exercise goods return option and exceed mileage allowance.  Yes. If contracted mileage allowance exceeded.

Part exchange

NB. Subject to settling outstanding finance. New agreements subject to status.

Yes  Yes N/A

Voluntary termination rights

NB. Regulated agreements only

Yes   Yes   N/A

Fully comprehensive insurance required

Yes    Yes  Yes  

Ability to amend monthly payment due date

NB. Subject to loss of interest charge.

Yes. Once every 12 months.  Yes. Once over the lifetime of the agreement. Yes. Subject to conditions.


*Hire Purchase, PCP and Personal Contract Hire are subject to status and only available to UK residents aged 18 and over. Credit products are provided by Suzuki Finance, a trading style of Suzuki Financial Services Ltd, St William House, Tresillian Terrace, Cardiff CF10 5BH. Personal Contract Hire is provided by Lex Autolease Limited trading as Suzuki Contract Hire, Heathside Park, Heathside Park Road, Stockport SK3 0RB.

**Under our PCP product, you have the option at the end of the agreement to return the vehicle and not pay the deferred optional Final Payment. Providing the vehicle is in good condition and has not exceeded the maximum agreed mileage you will have nothing further to pay. If the vehicle has exceeded the maximum agreed mileage a charge for excess mileage will apply. Further information on what is considered good condition can be found here.