Having a PCP finance agreement gives you the options of affording a newer vehicle with more manageable monthly payments and the options of handing the vehicle back and having nothing else to pay at the end of the contract, the vehicle has to be in good condition, with below the agreed mileage limit and the servicing has to be kept up to date with the vehicles manufacturing guidelines. “PCP splits price of vehicle into affordable manageable chunks, deposit, monthly payments and final payment, return the vehicle, buy it outright or trade it in.” If you rather pick the option of buying the vehicle outright, you simply make the optional final payment. Or, you can trade the vehicle in for a new one, taking advantage of any equity you may have built, should the car be worth more than the optional final payment needed to buy it, can be used as part of the deposit on a newer vehicle. “PCP finance makes it easier to drive around in the vehicle of your dreams with none of the annoying hassles and large monthly payments of a loan.” PCP does not mean you are tied into the car dealers, you don’t have to keep purchasing future vehicles from them, if you were to find a better deal on a vehicle at another car dealer, they can pay the optional final payment to buy your car from the finance company, treating it like a part exchange and you still benefit from any equity available.