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Glossary · Motoring

PCP (Personal Contract Purchase)

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Definition: A car-finance agreement where you pay a deposit and lower monthly instalments, with a balloon (Guaranteed Future Value) payment to own the car at the end.

At the end you can: hand the car back, pay the balloon to keep it, or part-exchange any equity into a new agreement. PCP is a regulated credit agreement — Section 75 and voluntary termination rights apply.

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